Assume a certain competitive price-taker firm is producing Q = 1,000 units of output. At Q = 1,000 . the firm's marginal cost equals $15 and its average total cost equals $11 . The firm sells its output for $12 per unit. To maximize its profit, the firm should
a. increase its output.
b. continue to produce 1,000 units.
c. decrease its output, but continue to produce.
d. shut down.
C
You might also like to view...
Factories and machines are examples of:
A. capital goods. B. consumption goods. C. non-market goods. D. value-added goods.
Suppose GDP is $10 billion, consumption expenditure is $7 billion, investment is $2 billion, and government expenditure on goods and services is $2 billion. Net exports of goods and services must be
A) $1 billion. B) -$2 billion. C) -$1 billion. D) $2 billion. E) $10 billion.
When measuring the opportunity cost of taking a vacation to Europe, the money spent on the flight, hotels, and meals is
a. generally less than the opportunity cost of the vacation b. generally greater than the opportunity cost of the vacation c. generally equal to the total opportunity cost of the vacation d. equal to the total opportunity cost of the vacation only if the vacation was planned well in advance e. equal to the total opportunity cost of the vacation only if there was little advanced planning
Ceteris paribus, if African countries experience a drought and purchase food from the United States, the currencies of the African countries should
A. Appreciate, and the dollar should depreciate. B. Depreciate, and the dollar should appreciate. C. Appreciate, and the dollar should appreciate. D. Depreciate, and the dollar should depreciate.