At Its Present Rate of Output,Barrel O' Biscuits,a Perfectly Competitive

question 18

Multiple Choice

At its present rate of output,Barrel O' Biscuits,a perfectly competitive firm,finds that its marginal cost exceeds its marginal revenue and its price exceeds its average variable cost.To maximize profit,the firm should _____

• A)lower the price.
• B)increase the price.
• C)increase output.
• D)decrease output.
• E)produce at its current level of output.

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Definitions:

Leaf

In a graphical data representation, a leaf is the end part of a stem in a stem-and-leaf plot, which displays numerical data.

Bar Chart

A graphical representation of data using bars of different heights or lengths to show the values of various categories.

Frequency Distribution

A mathematical function showing the number of instances in which a variable attains each of its possible values.