Suppose product price is fixed at $24; MR = MC at Q = 200; AFC = $6; AVC = $16 . What do you advise this firm to do?
a. Increase output.
b. Decrease output.
c. Shut down operations.
d. Stay at the current output; the firm is earning a profit of $400.
e. Stay at the current output; the firm is losing $200.
d
Economics
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If the MU/P for video rentals is 5 and the MU/P for movie theaters is 8, this person should go to movie theaters more often and rent fewer videos
Indicate whether the statement is true or false
Economics
Table 21.2Output (units per day)0102030Total cost (dollars per day)$40$54$62$80For the output levels in Table 21.2, the minimum of the average variable cost curve occurs at a production rate of
A. 10 units per day. B. 30 units per day. C. 20 units per day. D. Zero units per day.
Economics