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Figure 10-1 ​

Question 107

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Figure 10-1
​ Figure 10-1 ​ -Suppose a perfectly competitive firm's situation is shown in Figure 10-1 and the firm is currently producing at B.What should the firm do in this situation? A) The firm should continue producing at B since that is the short-run equilibrium. B) The firm should increase production to C, so that MR = MC. C) The firm should decrease production to lower marginal costs. D) The firm should lower the price and continue to produce at B.
-Suppose a perfectly competitive firm's situation is shown in Figure 10-1 and the firm is currently producing at B.What should the firm do in this situation?


A) The firm should continue producing at B since that is the short-run equilibrium.
B) The firm should increase production to C, so that MR = MC.
C) The firm should decrease production to lower marginal costs.
D) The firm should lower the price and continue to produce at B.

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