Consider the following figure that shows the demand and the cost curves of a perfectly competitive firm. If the price-taking firm is currently producing 6 units, it should _____ to maximize profit in the short run.
Figure 8.4
A) keep producing 6 units
B) increase production to 12 units
C) increase production to 14 units
D) increase production to 8 units
E) decrease production below 6 units.
Correct Answer:
Verified
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