At an output level of 500 units,ATC = $10,AVC = $5,MR = $3 and MC = $3,the result for the perfectly competitive firm will be:
A) making a loss of ($5 - $3) ´ 500 = $1000.
B) a decrease in output, so MC > MR.
C) making a short-run loss of $2500.
D) an increased output, so MR > MC.
E) unclear, as there is not enough information.
Correct Answer:
Verified
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