Assume Dell Computer Company Operates in a Perfectly Competitive Market

question 33

Multiple Choice

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

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Definitions:

Analytical Intelligence

A facet of general intelligence that involves the ability to analyze, evaluate, judge, compare, and contrast.

Practical Intelligence

The aspect of intelligence involving the ability to solve everyday problems through adaptive or creative thinking and learning from experience.

Componential Intelligence

An aspect of human intelligence involving analytic problem-solving skills, including the ability to evaluate, analyze, and solve problems.

Bodily-Kinesthetic Intelligence

A type of intelligence defined by Howard Gardner that involves skill in physical movement and the use of the body to express ideas and feelings.