Multiple Choice
If a firm in a perfectly competitive market faces the cost curves in the graph shown,which of the following is true? The firm:
A) if it produces at profit-maximizing level of output it will make positive profits when price is higher than $15.
B) if it produces at profit-maximizing level of output it will make positive profits when price is higher than $11.
C) should always produce at least 43 units in order to maximize profits.
D) will shut down if market price is below $15, but above $11.
Correct Answer:
Verified
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