Solved

Suppose That a Price Taker Collects Total Revenue of $1,000

Question 97

Multiple Choice

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents