Solved

Consider the Following Total Cost Schedule for a Perfectly Competitive

Question 77

Multiple Choice

Consider the following total cost schedule for a perfectly competitive firm producing ball-point pens.
Consider the following total cost schedule for a perfectly competitive firm producing ball-point pens.    TABLE 9-3 -Refer to Table 9-3.Suppose the prevailing market price for this firm's product is $0.14 and the firm is currently producing 20 units of output.This competitive firm wishing to maximize profits would A) increase output because marginal revenue is greater than marginal cost. B) decrease output because marginal revenue is less than marginal cost. C) increase output because marginal revenue is less than marginal cost. D) decrease output because marginal revenue is greater than marginal cost. E) produce zero output because price is less than the minimum average variable cost. TABLE 9-3
-Refer to Table 9-3.Suppose the prevailing market price for this firm's product is $0.14 and the firm is currently producing 20 units of output.This competitive firm wishing to maximize profits would


A) increase output because marginal revenue is greater than marginal cost.
B) decrease output because marginal revenue is less than marginal cost.
C) increase output because marginal revenue is less than marginal cost.
D) decrease output because marginal revenue is greater than marginal cost.
E) produce zero output because price is less than the minimum average variable 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