Consider a perfectly competitive firm in the following position: output = 4000,market price = $1,total fixed costs = $2000,total variable costs = $4500,and marginal cost = $1.To maximize profits the firm should
A)reduce its output.
B)expand its output.
C)produce zero output.
D)increase the market price.
E)not change its output.

Question

Quizplus · Accepted Answer

The Answer of Consider a perfectly competitive firm in the following position: output = 4000,market price = $1,total fixed costs = $2000,total variable costs = $4500,and marginal cost = $1.To maximize profits the firm should
A)reduce its output.
B)expand its output.
C)produce zero output.
D)increase the market price.
E)not change its output.

Consider a Perfectly Competitive Firm in the Following Position: Output