A company finds that at the MR = MC output level, its total cost is $500, total variable cost is $400, and total revenue is $450. Your advice to the firm is to
A) shut down immediately.
B) reduce output to reduce the cost of production.
C) increase output to reduce the per unit cost of production.
D) continue to produce, as total revenue covers total variable cost.
Correct Answer:
Verified
Q16: The profit maximizing level of production
A) is
Q17: The profit maximizing level of output for
Q18: When are profits maximized?
A) At the rate
Q19: The perfect competitor
A) produces what he thinks
Q20: In the short-run, the perfectly competitive
Q22: A perfectly competitive firm finds that its
Q23: A perfectly competitive firm finds that its
Q24: In the long run, the level of
Q25: In the short run in perfect competition,
Q26: A perfectly competitive firm earning zero economic
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