A competitive firm operating in the short run is producing at the output level at which ATC is at a minimum. If ATC = $8 and MR = $9, to maximize profits (or minimize losses), this firm should:

Name: A competitive firm operating in the short run is producing at the output level at which ATC is at a minimum. If ATC = $8 and MR = $9, to maximize profits (or minimize losses), this firm should:
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Question

Quizplus · Accepted Answer

Since MR ($9) is greater than ATC ($8), the firm should increase output to maximize profits.

A Competitive Firm Operating in the Short Run Is Producing