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Exhibit 7-11 a Firm's Cost and Marginal Revenue Curves in Exhibit

Question 152

Multiple Choice

Exhibit 7-11 A firm's cost and marginal revenue curves Exhibit 7-11 A firm's cost and marginal revenue curves In Exhibit 7-11, when the price is $2, the profit-maximizing (or loss-minimizing) firm: A) should shut down and produce zero. B) should produce output equal to 4. C) is making an economic profit of $8. D) should try to produce more output. E) has total revenue equal to $20. In Exhibit 7-11, when the price is $2, the profit-maximizing (or loss-minimizing) firm:

A) should shut down and produce zero.
B) should produce output equal to 4.
C) is making an economic profit of $8.
D) should try to produce more output.
E) has total revenue equal to $20.

Correct Answer: