A company finds that at the output level at which marginal cost equals marginal revenue, TC = $500, TVC = $400, and TR = $450. Your advice to the firm is
A) shut down, as TC > TR.
B) reduce output to reduce the cost of production.
C) increase output to reduce the per unit cost of production.
D) continue to produce because loss is less than TFC.
Answer: D
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Which is the best characterization of the current international payments system?
A) The World Bank and the IMF approve nations' exchange rate regimes and ensure that financial flows are not hampered by imbalances. B) All nations are now operating with floating exchange rates and free capital flows. C) The four richest industrial nations have floating exchange rates, while the rest of the nations peg to those currencies. D) There is no standard and no rules, and each nation chooses the regime that works best for its individual situation at the time.
Almost all event markets forecast accurately
Indicate whether the statement is true or false