Exhibit 7-8 A firm's cost and marginal revenue curves 
In Exhibit 7-8, product price in this market is fixed at $35. This firm is currently operating where MR = MC. What do you advise this firm to do?
A) This firm should shut down.
B) This firm could increase profits by increasing output.
C) This firm could increase profits by decreasing output.
D) This firm should continue to operate at its current output.
E) This firm should decrease price.
Correct Answer:
Verified
Q89: Above the shutdown point, a competitive firm's
Q116: A perfectly competitive firm's short-run supply curve
Q117: Exhibit 7-2 Total revenue and total cost graph
Q118: Exhibit 7-3 Cost per unit curves 
Q119: Exhibit 7-2 Total revenue and total cost graph
Q122: Exhibit 7-5 A firm's MR and MC curves
Q123: Exhibit 7-5 A firm's MR and MC curves
Q124: Exhibit 7-7 A firm's cost and MR curves
Q125: Exhibit 7-7 A firm's cost and MR curves
Q126: Exhibit 7-10 Price and cost data for a
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