Exhibit 7-9 A firm's cost and marginal revenue curves 
In Exhibit 7-9, product price in this market is fixed at $7. 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
Q129: Exhibit 7-4 Marginal cost and revenue for a
Q130: Exhibit 7-6 A firm's cost and MC curves
Q131: Exhibit 7-4 Marginal cost and revenue for a
Q132: Exhibit 7-6 A firm's cost and MC curves
Q133: Exhibit 7-3 Cost per unit curves 
Q135: Exhibit 7-8 A firm's cost and marginal revenue
Q136: Exhibit 7-5 A firm's MR and MC curves
Q137: Exhibit 7-10 Price and cost data for a
Q138: Exhibit 7-9 A firm's cost and marginal revenue
Q139: Exhibit 7-7 A firm's cost and MR curves
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