Consider a firm with the following cost and revenue information: ATC = $8, AVC = $7, and MR = MC = $6. If the firm produces Q = 60 in the short run, it:
A) is minimizing losses.
B) makes a total loss of $60.
C) should produce more output.
D) is making a mistake and should shut down.
E) is maximizing total profit.

Question

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The Answer of Consider a firm with the following cost and revenue information: ATC = $8, AVC = $7, and MR = MC = $6. If the firm produces Q = 60 in the short run, it:
A) is minimizing losses.
B) makes a total loss of $60.
C) should produce more output.
D) is making a mistake and should shut down.
E) is maximizing total profit.

Consider a Firm with the Following Cost and Revenue Information