Suppose that a price taker collects total revenue of $1,000 when it produces 200 units and the marginal cost of producing 200 units is $5.The firm should
A) expand production,because price is greater than marginal cost.
B) contract production,because price is greater than marginal cost.
C) expand production,because price is less than marginal cost.
D) contract production,because price is less than marginal cost.
E) leave production unchanged,because price equals marginal cost.
Correct Answer:
Verified
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