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Exhibit 7-9  a Firm's Cost and Marginal Revenue Curves in Exhibit

Question 138

Multiple Choice

Exhibit 7-9  A firm's cost and marginal revenue curves Exhibit 7-9  A firm's cost and marginal revenue curves In Exhibit 7-9, product price in this market is fixed at $14. 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. In Exhibit 7-9, product price in this market is fixed at $14. 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.

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