The Following Table Applies to a Purely Competitive Industry Composed

question 65

Multiple Choice

The following table applies to a purely competitive industry composed of 100 identical firms. $\begin{array}{lcl}Quantity&&Quantity\\Demanded &Price &Supplied\\\hline400,000 & \$ 5 & 800,000 \\500,000 & 4 & 700,000 \\600,000 & 3 & 600,000 \\700,000 & 2 & 500,000 \\800,000 & 1 & 400,000\end{array}$ Refer to the table.If each of the 100 firms in the industry is maximizing its profit,each must have a marginal cost of:

• A) $5.
• B) $4.
• C) $3.
• D) $2.

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Definitions:

Interactionist Theories

Approaches that emphasize how individuals and society interact, shaping personal identity and social structures through this interplay.

Language Development

The process by which children come to understand and communicate language during early childhood.

Functional Fixedness

A bias in cognition that confines a person to employ an object exclusively in its customary use, obstructing the process of generating creative solutions.

Mental Sets

Mental sets refer to the tendency to approach situations in a certain way because that method worked in the past, potentially preventing us from seeing alternative solutions.