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FIGURE 8-3 -Refer to Figure 8-3. Suppose the Market Price Equals $88

Question 44

Multiple Choice

FIGURE 8-3
FIGURE 8-3 -Refer to Figure 8-3. Suppose the market price equals $88 and the firm is currently producing 600 units of output. In this situation, what can we conclude about the firm? A) It is maximizing profit. B) It should increase production of output in order to maximize profit. C) It should decrease production of output in order to maximize profit. D) It should shut down in order to minimize economic losses.
-Refer to Figure 8-3. Suppose the market price equals $88 and the firm is currently producing 600 units of output. In this situation, what can we conclude about the firm?


A) It is maximizing profit.
B) It should increase production of output in order to maximize profit.
C) It should decrease production of output in order to maximize profit.
D) It should shut down in order to minimize economic losses.

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