A firm sells a product in a purely competitive market. The marginal cost of the product at the current output of 1,000 units is $2.50. The minimum possible average variable cost is $2.00. The market price of the product is $2.50. To maximize profits or minimize losses, the firm should:
A. Continue producing 1,000 units
B. Continue production, but produce less than 1,000 units
C. Increase production to more than 1,000 units
D. Shut down
A. Continue producing 1,000 units
Economics
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Monopolistic competition is characterized by a few sellers offering similar products, whereas oligopoly is characterized by many sellers offering differentiated products
a. True b. False Indicate whether the statement is true or false
Economics