Suppose That Cheapo Industries,a Perfectly Competitive Firm,currently Produces 500 Units

question 28

Multiple Choice

Suppose that Cheapo Industries,a perfectly competitive firm,currently produces 500 units of imitation ham spread for a total cost of $1,500.The marginal cost of the 500^th unit is $20,and the marginal revenue of the 500^th unit is $15.To maximize profits,Cheapo Industries should:

• A)continue to produce 500 units.
• B)produce more than 500 units but less than 1500 units.
• C)produce less than 500 units.
• D)produce more than 1500 units.
• E)stop producing at 500 units.

Differentiate between the various goals of science such as description, prediction, understanding, and application.

Identify the process of theory construction and revision in science.

Differentiate between variables, hypotheses, theories, and operational definitions in the context of psychological research.

Understand the importance and process of operational definitions in ensuring clarity and preciseness in research.

---

Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting its decrease in value over time.

Straight-line Depreciation

A method of allocating the cost of a tangible asset over its useful life evenly.

Total Asset Turnover

An efficiency ratio indicating how well a company's assets are used to generate revenue from sales.

Average Total Assets

The average value of all the assets a company owns over a specific time period, calculated by adding the beginning and ending assets and dividing by two.