A multi-plant firm has three plants and, at its current production levels, the marginal cost of production at each of the three plants is $2. If the firm is perfectly competitive and the market price of its product is $6, which of the following is true?
A) The firm should decrease output at each of the plants to maximize profit.
B) The firm is producing the profit-maximizing total output.
C) The firm should exactly triple output in each of the plants to maximize profit.
D) The firm should increase output at each of the plants to maximize profit.
B) The firm is producing the profit-maximizing total output.
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ABC Company is currently producing 450 units of output. The output is sold in a perfectly competitive market at a price of $35 . The marginal cost of the 450th unit is $38
Is ABC Company producing at the profit-maximizing level of output? Explain.
During the recession phase of the business cycle,
A) interest rates are usually falling. B) income is usually rising. C) production is usually rising. D) unemployment is usually falling.
Among countries with per capita Gross national income in 2006 of less than $2,000,
A. high-income households tend to account for a larger share of aggregate consumption. B. agriculture tends to produce a smaller share of GDP. C. the consumer price inflation rate tends to be lower. D. all of the options are correct.
Which of the following protects people from incompetent or unscrupulous producers?
A. the Federal Register B. social regulation C. antitrust policy D. economic regulation