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Assume the Following Total Cost Schedule for a Perfectly Competitive

Question 117

Multiple Choice

Assume the following total cost schedule for a perfectly competitive firm.  Output  TVC  TFC 001001401002701003120100418010052501006330100 TABLE 9- 2\begin{array}{l}\begin{array} { | l | l | l | } \hline \text { Output } & \text { TVC } & \text { TFC } \\\hline 0 & 0 & 100 \\\hline 1 & 40 & 100 \\\hline 2 & 70 & 100 \\\hline 3 & 120 & 100 \\\hline 4 & 180 & 100 \\\hline 5 & 250 & 100 \\\hline 6 & 330 & 100 \\\hline\end{array}\\\text { TABLE 9- } 2\end{array}
-Refer to Table 9- 2. In order to maximize its profits, the firm should continue to produce in the short run even if the market price is less than its ATC as long as the price is greater than or equal to


A) MC.
B) AVC.
C) TC
D) TVC.
E) AFC.

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