The Following Table Shows a Profit-Maximizing Producer's Marginal Costs

question 56

Multiple Choice

The following table shows a profit-maximizing producer's marginal costs.The firm is operating in a perfectly competitive market and has fixed costs of $500.

-Refer to the above information to answer this question.If the price is $500,what is the optimal output and what is the profit or loss?

• A)5 and a profit of $1,150.
• B)6 and a profit of $1,200.
• C)7 and a profit of $560.
• D)7 and a profit of $1,430.
• E)8 and a profit of $1,330.

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Definitions:

Deindividuation

A psychological state where an individual loses self-awareness and self-restraint, often occurring in group settings that foster anonymity.

Social Facilitation

When the mere presence of others improves performance.

Group Polarization

The phenomenon by which a group's prevailing attitudes or beliefs become more extreme following group discussions, as members tend to support more extreme positions.

Groupthink

A psychological phenomenon that occurs within a group of people in which the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.