Assume that price is greater than average variable cost. If a perfectly competitive seller is producing at an output where price is $11 and the marginal cost is $14.54, then to maximize profits the firm should
A) continue producing at the current output.
B) produce a smaller level of output.
C) produce a larger level of output.
D) There is not enough information given to answer the question.
B
Economics
You might also like to view...
In the figure above, what is Gap's excess capacity?
A) 32 jackets per day B) zero C) 4 jackets per day D) 132 jackets per day
Economics
The growth in income inequality in the United States since the early 1980s has been driven primarily by the dramatic:
A. increase in real incomes for the top 20 percent of earners. B. increase in real incomes for the top 10 percent of earners. C. decrease in real incomes for the bottom 20 percent of earners. D. increase in real incomes for the top 1 percent of earners.
Economics