At Its Present Rate of Output, 200 Units, a Perfectly

question 102

Multiple Choice

At its present rate of output, 200 units, a perfectly competitive firm has variable costs of $10, 000 and marginal cost of $50, and accepts the market price of $40 per unit.To improve its profit/loss situation, this firm should

• A)increase output
• B)reduce output but not to zero
• C)maintain the present rate of output
• D)shut down
• E)raise the price

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Definitions:

Fibroblasts

A type of cell that is responsible for making the extracellular matrix and collagen, playing a critical role in wound healing and tissue repair.

Dense Regular

Connective tissue characterized by tightly packed collagen fibers aligned in a parallel arrangement, providing strength in one direction.

Protein Fibers

Long, string-like structures composed of proteins that play various roles in the cell, including providing support, shape, and enabling movement.

Ground Substance

The amorphous, gel-like substance surrounding cellular components in connective tissue, providing support and mediating communication between cells.