If a perfectly competitive firm in the short run can sell its output at $2.50 per bushel and it has an average variable cost of $1.75 per bushel and a marginal cost of $0.85 per bushel,it should
A) expand output.
B) raise its price.
C) cut output to zero.
D) advertise.
E) do nothing at all; it is currently maximizing profits.
Correct Answer:
Verified
Q23: The following question are based on the
Q24: A perfectly competitive firm's marginal cost curve
Q25: What is the profit-maximizing level of output
Q26: The following question are based on the
Q27: The following question are based on the
Q29: The perfectly competitive firm's supply curve is
Q30: Even if a perfectly competitive firm produces
Q31: It would NOT pay a firm to
Q32: If input prices increase with industry expansion
A)
Q33: Choosing an output rate at which price
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents