A perfectly competitive firm finds that: Average total cost is $25; Average variable cost is $15; Marginal cost is $20 and increasing; Price of the product is $22. This firm should
a. produce more output
b. raise the price of its product
c. reduce production without shutting down
d. shut down (reduce output to zero)
e. do nothing (it is currently maximizing profit)
A
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The authors of the textbook would not want to say you were "littering" when you toss your peanut shells under your seat at a major league baseball game because
A) peanut shells are biodegradable. B) someone is going to clean up after you. C) the games are played outside. D) the stadium is public property and public property is no one's property. E) the people in charge of putting on the game don't mind at all.
The difference between money and income is that whereas income is an individual's
A) flow of earnings over a period of time, money is an individual's stock of currency and currency substitutes. B) stock of all assets, money is an individual's stock of currency and currency substitutes. C) flow of earnings over a period of time, money is an individual's stock of all assets. D) stock of currency and currency substitutes, money is an individual's stock of all assets.