FIGURE 9-1
-Refer to Figure 9-1.The diagram shows cost curves for a perfectly competitive firm.If the market price is P₄ and the firm is producing output level F,this firm should

Question

FIGURE 9-1 -Refer to Figure 9-1.The diagram shows cost curves for a perfectly competitive firm.If the market price is P₄ and the firm is producing output level F,this firm should

Quizplus · Accepted Answer

If the market price is P4 and the firm is producing output level F, the firm should expand output to quantity G. This is because the marginal cost of producing the next unit of output is less than the market price, so the firm can increase its profit by producing more output.

FIGURE 9-1 -Refer to Figure 9-1.The Diagram Shows Cost Curves for a for a Perfectly