Assume You Know the Following Short Run Information for a Perfectly

question 8

Multiple Choice

Assume you know the following short run information for a perfectly competitive firm: $\begin{array}{c}\begin{array}{lll}\text {Quantity}\\\\6 \\7 \\8 \\9 \\10 \\11 \end{array}\begin{array}{lll}\text {Price}\\\\10\\\\\\\\\\\\ \end{array}\begin{array}{cc}\text { Total } & \text { Marginal } \\\text { Revenue } & \text { Revenue }\\\\\\\\\\\\\\\end{array}\begin{array}{lll}\text {Total}\\\text {Cost}\\30\\\\51\\62 \\75\\90 \end{array}\begin{array}{cc}\text { Marginal } & \text { Total } \\\text { Cost } & \text { Profil } \\& 30 \\& 35 \\& 42\\\\\\\\ \end{array}\end{array}$
Based on the information above, which of the following is true?

• A)The marginal revenue for the 12^th unit of output will be less than $10.
• B)The firm would earn higher profits if it produced 10 units than if it produced 9 units.
• C)The profit from producing 12 units of output will be the same as for producing 6 units of output.
• D)Fixed costs for the firm are $30.
• E)None of the above is true.

---

Definitions:

Stressful Situations

Circumstances that cause a physical or emotional response due to perceived challenges or threats.

Anger

A strong feeling of annoyance, displeasure, or hostility.

Frustration

A feeling of dissatisfaction or annoyance that arises from obstacles blocking goals or desires.

Repercussions

Consequences or effects that follow an action or decision, often unexpected or negative.