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Scenario 14-1 Assume a Certain Firm Is Producing 1000 Units of Output

Question 103

Multiple Choice
Scenario 14-1
Assume a certain firm is producing 1000 units of output (so Q = 1000).At Q = 1000, the firm's marginal cost equals $15 and its average total cost equals $11.The firm sells its output for $12 per unit.
-Refer to Scenario 14-1.To maximize its profit,what should the firm do

Scenario 14-1
Assume a certain firm is producing 1000 units of output (so Q = 1000) .At Q = 1000, the firm's marginal cost equals $15 and its average total cost equals $11.The firm sells its output for $12 per unit.
-Refer to Scenario 14-1.To maximize its profit,what should the firm do


A) It should shut down.
B) It should decrease its output, but continue to produce.
C) It should continue to produce 1000 units.
D) It should increase its output.

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