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A Firm Is Producing 10,000 Units of Output

Question 55

Multiple Choice

A firm is producing 10,000 units of output.Price at this output level is $16.00 for each unit,and marginal revenue is $13.00.Average per unit cost is $12.00,and marginal cost is $12.50.From this information,we can conclude that the business


A) enjoys economies of scale.
B) is maximizing profit at this level.
C) should produce less.
D) should produce more.

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