A Firm in Perfectly Competitive Industry Is Maximizing Profit at Q

question 63

Multiple Choice

A firm in perfectly competitive industry is maximizing profit at Q = 3, 000.Then its fixed cost increases.The profit-maximizing output is now

• A)greater than 3, 000 and profit decreases
• B)less than 3, 000 and profit decreases
• C)greater than 3, 000 and profit is unchanged
• D)equal to 3, 000 and profit decreases
• E)equal to 3, 000 and profit increases

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Definitions:

Behaviorist Perspective

A theory in psychology that focuses on observable behaviors rather than on internal mental processes, emphasizing the role of environment and experience in shaping behavior.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention, until it is associated with an unconditioned stimulus.

Unconditioned Stimulus

In classical conditioning, a stimulus that unconditionally—naturally and automatically—triggers a response without any learning needed.

Behaviorism

An approach to psychology that emphasizes the study of observable behavior and the role of the environment and prior experience as determinants of behavior.