Consider the total cost and revenue curves shown below,for two perfectly competitive firms,Firm A and Firm B. FIGURE 9-4
-Refer to Figure 9-4.Given its total cost and revenue curves,Firm A should
A)build another plant to reap scale economies.
B)produce zero output.
C)continue production,as it is earning positive profits.
D)maximize its profits by producing that level of output such that the slope of the TC curve is equal to the slope of the TR curve.
E)maximize its profits by producing that level of output such that the slope of the TVC curve is equal to the slope of the TR curve.

Question

Consider the total cost and revenue curves shown below,for two perfectly competitive firms,Firm A and Firm B.  FIGURE 9-4
-Refer to Figure 9-4.Given its total cost and revenue curves,Firm A should
A)build another plant to reap scale economies. 
B)produce zero output. 
C)continue production,as it is earning positive profits. 
D)maximize its profits by producing that level of output such that the slope of the TC curve is equal to the slope of the TR curve. 
E)maximize its profits by producing that level of output such that the slope of the TVC curve is equal to the slope of the TR curve.

Quizplus · Accepted Answer

The Answer of Consider the total cost and revenue curves shown below,for two perfectly competitive firms,Firm A and Firm B.  FIGURE 9-4
-Refer to Figure 9-4.Given its total cost and revenue curves,Firm A should
A)build another plant to reap scale economies. 
B)produce zero output. 
C)continue production,as it is earning positive profits. 
D)maximize its profits by producing that level of output such that the slope of the TC curve is equal to the slope of the TR curve. 
E)maximize its profits by producing that level of output such that the slope of the TVC curve is equal to the slope of the TR curve.

Consider the Total Cost and Revenue Curves Shown Below,for Two