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A Perfectly Competitive Firm Sells 200 Units at a Market

Question 90

Multiple Choice

A perfectly competitive firm sells 200 units at a market price of $40 per unit.Its marginal cost is $50,and it incurs a variable cost of $10,000.To improve its profit or loss situation,this firm should _____


A) increase output sold to 300 units.
B) reduce output but not to zero.
C) continue to produce the present level of output.
D) shut down.
E) raise the price to $45 per unit.

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