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The Table Given Below Shows the Price of Each Unit

Question 34

Multiple Choice

The table given below shows the price of each unit of the product manufactured by a firm and the marginal cost of producing different units of the output.Table: 10.1
The table given below shows the price of each unit of the product manufactured by a firm and the marginal cost of producing different units of the output.Table: 10.1    -Refer to Table 10.1. If the market price of the good falls to $0.80 per unit, the firm: A) should decrease its output to six units, in order to maximize profit. B) should decrease its output to seven units, in order to maximize profit. C) should increase its output to ten units, in order to maximize profit. D) should decrease its output to four units, in order to maximize profit. E) should keep its output level unchanged, in order to maximize profit.
-Refer to Table 10.1. If the market price of the good falls to $0.80 per unit, the firm:


A) should decrease its output to six units, in order to maximize profit.
B) should decrease its output to seven units, in order to maximize profit.
C) should increase its output to ten units, in order to maximize profit.
D) should decrease its output to four units, in order to maximize profit.
E) should keep its output level unchanged, in order to maximize profit.

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