Suppose a perfectly competitive firm faces the following short-run cost and revenue conditions: ATC = $6.00; AVC = $4.00; MC = $3.50; MR = $3.50. The firm should

A) increase output.
B) increase price.
C) remain at the same position.
D) shut down.

Answer: D

Economics

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a. true b. false

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A general equilibrium analysis of a price change in the corn chip market would include an investigation of the impacts in

A) the television market. B) the coffee market. C) the salsa market. D) All of the above.

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