A Perfectly Competitive Firm Produces 3,000 Units of a Good

question 106

Multiple Choice

A perfectly competitive firm produces 3,000 units of a good at a total cost of $36,000.The fixed cost of production is $20,000.The price of each good is $10.Should the firm continue to produce in the short run?

• A)No, it should shut down because it is making a loss.
• B)Yes, it should continue to produce because its price exceeds its average fixed cost.
• C)Yes, it should continue to produce because it is minimizing its loss.
• D)There is insufficient information to answer the question.

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Definitions:

Genetic Markers

DNA sequences that indicate the presence of a particular gene or genetic variation, often used in genetic testing and research.

Aggression

Different actions that could lead to either psychological or physical injury to oneself, other people, or environmental elements.

Social Scripts

Predefined, socially accepted sequences of actions that guide individuals' behaviors in specific situations or roles.

Scapegoat Theory

A psychological concept that suggests individuals or groups are unfairly blamed for problems or wrongdoings.