If the Short-Run Marginal Costs of Producing a Good Are

question 7

Multiple Choice

If the short-run marginal costs of producing a good are $20 for the first 400 units and $30 for each additional unit beyond 400, then in the short run, if the market price of output is $21, a profit-maximizing firm will

• A)produce a level of output where marginal revenue equals marginal costs.
• B)not produce at all, since marginal costs are increasing.
• C)produce up to the point where average costs equal $21.
• D)produce as much output as possible since there are constant returns to scale.
• E)produce exactly 400 units.

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Definitions:

Metaphase II

A stage of meiosis II where sister chromatids, now individual chromosomes, line up at the metaphase plate, preparing for segregation into daughter cells.

External Signal

A factor outside a cell or organism that triggers a response inside the cell or organism.

Equatorial Plane

An imaginary plane perpendicular to the spindle fibers of a dividing cell, about halfway between the poles, defining the future division line between two daughter cells.

S Phase

The phase of the cell cycle during which DNA is replicated, preparing the cell for division.