The Table Given Below Shows the Price of Each Unit

question 115

Multiple Choice

The table given below shows the price of each unit of the product manufactured by a firm and the marginal cost of producing different units of the output.Table: 10.1

-Refer to Table 10.1. If the market price of the good falls to $0.80 per unit, the firm:

• A)should decrease its output to six units, in order to maximize profit.
• B)should decrease its output to seven units, in order to maximize profit.
• C)should increase its output to ten units, in order to maximize profit.
• D)should decrease its output to four units, in order to maximize profit.
• E)should keep its output level unchanged, in order to maximize profit.

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Definitions:

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Revocation

The termination of an offer by notice communicated to the offeree before acceptance.

Acceptance

A statement or act given in response to and in accordance with an offer.

Offer

A tentative promise subject to a condition.