A Competitive Firm Operating in the Short Run Is Maximizing

question 161

Multiple Choice

A competitive firm operating in the short run is maximizing profits and just breaking even.Its costs include a monthly state license fee of $100 that must be paid for as long as the firm operates.If the license fee is raised to $150,what should the firm do to maximize profits in the short run?

• A)increase price
• B)increase output
• C)reduce output
• D)not change output

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Definitions:

Anterior and Posterior

Terms used to describe the location of anatomical structures, with anterior meaning towards the front and posterior meaning towards the back.

Lumbar

Pertaining to the lower back part of the spine comprising the five vertebrae between the rib cage and the pelvis.

Lower Back

The lumbar region of the spine, often associated with back pain due to its role in supporting the upper body.

Axillary

Pertaining to the armpit area, including structures such as lymph nodes, blood vessels, and nerves located within this region.