Multiple Choice
-Refer to Table 9.1.If the market price is $40,which of the following would you recommend to this firm?
A) Continue producing 4 units of output, because the firm is able to make an economic profit.
B) Increase output to 5 units, so that marginal cost equals marginal revenue.
C) Reduce price to $35, so that marginal cost will be less marginal revenue.
D) Shut down production to insure loss minimization.
Correct Answer:
Verified
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