A firm is currently operating where the MC of the last unit produced = $84, and the MR of this unit = $70 . What would you advise this firm to do?
a. Shut down.
b. Increase output.
c. Stay at its current output.
d. Decrease output.
e. Decrease price.
d
Economics
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Elasticities measure how responsive buyers and sellers are to ______.
a. overproduction b. deadweight losses c. price changes d. product quality
Economics
The price of headphones increases from $20 to $24. As a result, the quantity demanded falls from 33 to 27 per week. Calculate the price elasticity of this product using the midpoint method. Show the steps you use.
What will be an ideal response?
Economics