The table given below shows the price of each unit of the product manufactured by a firm and the marginal cost of producing different units of the output. Table: 23.1
Refer to Table 23.1.If the market price of the good falls to $0.80 per unit, the firm:
A) should decrease its output to seven units.
B) should decrease its output to seven Units.
C) should increase its output to ten units.
D) should produce nine units.
E) should keep its output level unchanged.
Correct Answer:
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