-In Exhibit I-2, this firm is currently producing 16 units. What would you advise this firm to do?
A) decrease quantity to 13
B) increase quantity to 15
C) remain at 16 units
D) decrease quantity to 14
E) increase quantity to 17

Question

-In Exhibit I-2, this firm is currently producing 16 units. What would you advise this firm to do?
A) decrease quantity to 13 
B) increase quantity to 15 
C) remain at 16 units 
D) decrease quantity to 14 
E) increase quantity to 17

Quizplus · Accepted Answer

Without the exhibit, it's assumed that the firm is at an optimal production level at 16 units, hence the advice to remain at 16 units.

-In Exhibit I-2, This Firm Is Currently Producing 16 Units