Suppose that in a perfectly competitive industry,the market price of the product is $27.A firm is producing the output level at which average total cost equals marginal cost,both of which are $25.Average variable cost is $23.To maximize profits in the short run,the firm should
A) reduce its output.
B) increase its output.
C) leave its output unchanged.
D) shut down.
E) change the price of the product.
Correct Answer:
Verified
Q92: Consider a perfectly competitive firm in the
Q93: A perfectly competitive firm maximizes its profits
Q94: Suppose that in a perfectly competitive industry,the
Q95: Consider a perfectly competitive firm in the
Q96: Suppose a perfectly competitive firm is producing
Q98: On a graph showing a firm's TC
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents