Suppose a Price-Taking Firm Produces 400 Units at Its Optimal

question 110

Multiple Choice

Suppose a price-taking firm produces 400 units at its optimal output level.At that output rate marginal cost is $200, average total cost is $240, and average variable cost is $170.What can you determine about the market price that would force the firm to shut down in the short run?

• A)It equals $200.
• B)It is between $170 and $240.
• C)It is less than $170.
• D)It is between $170 and $200.
• E)It equals $240.

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Definitions:

Stereotype Threat

A phenomenon where awareness of stereotypes about one's identity group leads to anxiety and reduced performance.

Stereotype Content Model

A theory suggesting that stereotypes are based on the perceived warmth and competence of social groups, determining their societal status and emotional responses from others.

Competence; Status

Refers to the knowledge, skills, and abilities that an individual possesses, which contribute to their social status and how others perceive them.

Ambivalent Racism

A theory suggesting that people can have conflicting, simultaneous racist and egalitarian attitudes, leading to ambivalent feelings and behaviors toward racial outgroups.