Assume Price Exceeds Average Variable Cost Over the Relevant Range

question 161

Multiple Choice

Assume price exceeds average variable cost over the relevant range of demand.If a monopolistically competitive firm is producing at an output where marginal revenue is $23 and marginal cost is $19, then to maximize profits the firm should

• A)continue to produce the same quantity.
• B)increase output.
• C)decrease output.
• D)shut down.

---

Definitions:

Altruistic Personality

A personality trait characterized by the inclination to help others selflessly without expecting any reward.

Altruistic Tendencies

The inclination to act in a selfless manner, prioritizing the welfare of others even at a personal cost, reflecting a fundamental aspect of human social behavior.

Agreeableness

A personality trait characterized by warmth, friendliness, and a cooperative disposition.

Willingness to Help

An individual's predisposition to assist others in need without expecting any reward.