The Ajax Manufacturing Company is selling in a purely competitive market. Its output is 100 units, which sell at $4 each. At this level of output, total cost is $600, total fixed cost is $100, and marginal cost is $4. The firm should
A)reduce output to about 80 units.
B)expand its production.
C)continue to produce 100 units.
D)produce zero units of output.

Question

Quizplus · Accepted Answer

The Answer of The Ajax Manufacturing Company is selling in a purely competitive market. Its output is 100 units, which sell at $4 each. At this level of output, total cost is $600, total fixed cost is $100, and marginal cost is $4. The firm should
A)reduce output to about 80 units.
B)expand its production.
C)continue to produce 100 units.
D)produce zero units of output.

The Ajax Manufacturing Company Is Selling in a Purely Competitive