Assume That Price Is Greater Than Average Variable Cost

question 91

Multiple Choice

Assume that price is greater than average variable cost.If a perfectly competitive seller is producing at an output where price is $11 and the marginal cost is $14.54, then to maximise profits the firm should

• A)continue producing at the current output.
• B)produce a larger level of output.
• C)produce a smaller level of output.
• D)There is not enough information given to answer the question.

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Definitions:

Endoplasmic Reticulum

An organelle within the cytoplasm of a cell.

Cytoplasm

The gel-like substance inside the cell membrane, excluding the nucleus, containing organelles and responsible for important cellular processes.

Cell Membrane

A biological membrane that separates the interior of all cells from the outside environment, controlling the movement of substances in and out of cells.

Nucleus

The central and most important part of an atom, containing protons and neutrons, or the control center of a cell containing the cell's DNA.