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The Figure Above Shows Cost Curves for a Perfectly Competitive

Question 52

Multiple Choice

  The figure above shows cost curves for a perfectly competitive firm.Suppose that market price is $2.60.A firm producing 800 units of output A) is earning the maximum amount of profit,$880. B) is earning the maximum amount of profit,$2,080. C) should produce 500 units of output instead,to earn profits of $500. D) should produce 1100 units of output instead,to earn profits of $1,100. E) should shut down The figure above shows cost curves for a perfectly competitive firm.Suppose that market price is $2.60.A firm producing 800 units of output


A) is earning the maximum amount of profit,$880.
B) is earning the maximum amount of profit,$2,080.
C) should produce 500 units of output instead,to earn profits of $500.
D) should produce 1100 units of output instead,to earn profits of $1,100.
E) should shut down

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