The Figure Above Shows Some of a Firm's Cost Curves

question 130

Multiple Choice

The figure above shows some of a firm's cost curves and its marginal revenue curve.
-Suppose the price of a can was $5.10.In this case,to maximize its profit,the firm illustrated in the figure above would

• A) decrease its production and would make an economic profit.
• B) not change its production and would make zero economic profit.
• C) not change its production and would make an economic profit.
• D) decrease its production and would incur an economic loss.
• E) not change its production and would incur an economic loss.

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Definitions:

Ontology

The study of being: “What is most real?”; “What is it for a thing to exist?”

Evaluative

Involving value judgments, as opposed to simply being descriptive.

Basic

Constituting an essential foundation or starting point; fundamental characteristics or principles of something.

Pythagoras

An ancient Greek philosopher and mathematician who is credited with significant developments in mathematics, astronomy, and the theory of music.