A Firm in a Competitive Market Has the Following Cost

question 487

Multiple Choice

A firm in a competitive market has the following cost structure: If the firm's fixed cost of production is $3, and the market price is $10, how many units should the firm produce to maximize profit?

• A) 1 unit
• B) 2 units
• C) 3 units
• D) 4 units

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Definitions:

Optical Storage

A method of storing data on a disc using optical technology, such as CDs, DVDs, and Blu-ray discs.

Hard Drives

Data storage devices used in computers and other devices, employing magnetic storage to save and retrieve digital information.

Output Technologies

Technologies concerned with the presentation of data, including monitors, printers, and audio systems, designed to communicate information to the user.

Microprocessor

A computer processor contained on a single integrated circuit, performing the functions of a CPU in a computer system.