For a price taker,market equilibrium price is $100.At 50 units,MR = MC,ATC = $80,and AVC = $70.This price taker will
A) earn $100 profits if it produces 50 units of the good.
B) earn $1,000 profits if it produces 50 units.
C) shut down its operation and by doing this minimize its losses.
D) maximize its profits if it produces fewer than 50 units.
E) maximize its profits if it produces more than 50 units.
Correct Answer:
Verified
Q118: Exhibit 23-9 Q119: Exhibit 23-8 Q120: Exhibit 23-9 Q125: Equilibrium price is $10 in a perfectly Q126: For a perfectly competitive firm, Q126: Equilibrium price is $8 in a perfectly Q147: In long-run competitive equilibrium P = SRATC, Q151: Equilibrium price is $22 in a perfectly Q155: Equilibrium price is $10 in a perfectly Q160: If, for a perfectly competitive firm, marginal Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
A)marginal revenue is
