The following figure shows the total cost and total revenue for a firm when it prices its products at $8 and $10.
Figure 9-1
-In Figure 9-1,if the market price fell to $8 the firm would:
A)decrease production to OJ and would be operating at a loss.
B)decrease production to OJ and would be earning a normal return.
C)decrease production to OF where it would break even.
D)incur losses and shut down.

Question

The following figure shows the total cost and total revenue for a firm when it prices its products at $8 and $10.
Figure 9-1 
-In Figure 9-1,if the market price fell to $8 the firm would:
A)decrease production to OJ and would be operating at a loss. 
B)decrease production to OJ and would be earning a normal return. 
C)decrease production to OF where it would break even. 
D)incur losses and shut down.

Quizplus · Accepted Answer

The Answer of The following figure shows the total cost and total revenue for a firm when it prices its products at $8 and $10.
Figure 9-1 
-In Figure 9-1,if the market price fell to $8 the firm would:
A)decrease production to OJ and would be operating at a loss. 
B)decrease production to OJ and would be earning a normal return. 
C)decrease production to OF where it would break even. 
D)incur losses and shut down.

The Following Figure Shows the Total Cost and Total Revenue