Assume Dell Computer Company Operates in a Perfectly Competitive Market

question 150

Multiple Choice

Assume Dell Computer Company operates in a perfectly competitive market producing 5,000 computers per day. At this output level, price equals this firm's marginal cost. To maximize profits, Dell should

• A) make no adjustments as they are already maximizing their profits.
• B) increase their output.
• C) decrease their output.
• D) stop producing since it is earning a loss.

---

Definitions:

Jeweller

A specialized professional or establishment in the business of selling, crafting, and repairing jewelry.

Canadian Polar Bear Diamonds

High-quality diamonds sourced from specific mines in Canada, known for their ethical sourcing and purity.

Trade Discount

A reduction from the listed price of goods or services offered to buyers in the business-to-business market to encourage purchase in larger quantities.

Real Estate Commission

The fee, typically a percentage of the sale price, paid to a real estate agent for their services in selling a property.