Anderson's Bakery sells apple pies in a perfectly competitive market. The market price is $12 per pie. The bakery produces 300 pies per month with a marginal cost of $7 per pie, an average variable cost of $5 per pie, and an average total cost of $7 per pie. In this scenario, Anderson is likely to:
a. increase the production of apple pies to maximize profit
b. decrease the production of apple pies but stay open.
c. continue to maintain current production levels to minimize losses.
d. shut down immediately to minimize losses.
c
Economics
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Which of the following shifts the demand curve for oranges?
A) disastrous weather that destroys about half of this year's orange crop B) a decrease in the price of a pound of bananas, a substitute in consumption for oranges C) an increase in the price of the fuel used to transport oranges to supermarkets D) great weather that produces a bumper orange crop this year
Economics
What is a tariff?
What will be an ideal response?
Economics