A perfectly competitive firm is currently producing an output level where price is $10.00, average variable cost is $6.00, average total cost is $10.00, and marginal cost is $8.00. In order to maximize profits, this firm should
A) decrease its output.
B) increase the market price.
C) shut down.
D) increase its output.
E) not change its output -- this firm is at its profit- maximizing position.

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The Answer of A perfectly competitive firm is currently producing an output level where price is $10.00, average variable cost is $6.00, average total cost is $10.00, and marginal cost is $8.00. In order to maximize profits, this firm should
A) decrease its output.
B) increase the market price.
C) shut down.
D) increase its output.
E) not change its output -- this firm is at its profit- maximizing position.

A Perfectly Competitive Firm Is Currently Producing an Output Level