Suppose a price-taking firm produces 400 units at its optimal output level.At that output rate,marginal cost is $200,average total cost is $240,and average variable cost is $170.The firm will be forced to go out of business in the short run if _____
A) the market price equals $200 per unit.
B) the market price is between $170 per unit and $240 per unit.
C) the market price falls below $170 per unit.
D) the market price is between $200 per unit and $240 per unit.
E) the market price equals $240 per unit.
Correct Answer:
Verified
Q89: Exhibit 8.7 Q90: A perfectly competitive firm sells 200 units Q91: If a manufacturer shuts down in the Q92: Exhibit 8.7 Q93: In the short run,a firm will produce Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
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