Scenario 14-3 Suppose a Certain Competitive Firm Is Producing Q=500 Units of Units

question 9

Multiple Choice

Scenario 14-3
Suppose a certain competitive firm is producing Q=500 units of output. The marginal cost of the 500th unit is $17, and the average total cost of producing 500 units is $12. The firm sells its output for $20.
-Refer to Scenario 14-3. If the marginal cost of producing the 501st unit would be $19, producing and selling the 501st unit would

• A)decrease the firm's profit by $19.
• B)decrease the firm's profit by $2.
• C)increase the firm's profit by $1.
• D)increase the firm's profit by $3.

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Definitions:

Cognitive Therapists

Professionals who treat psychological issues by identifying and changing dysfunctional thinking patterns, attitudes, and beliefs.

Fear-Evoking Stimuli

Events, objects, or situations that trigger a fear response.

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses and anxiety by gradually exposing the subject to the feared object or situation in a controlled manner.

Visual Images

Pictures or representations in a person's mind or produced by imagination.