In the short run, a perfectly competitive firm is producing an output level where marginal cost equals $10, average total cost equals $7, and marginal revenue equals $9 . Which of the following statements is correct?
a. The firm is earning an economic profit which could be increased by raising output.
b. The firm is earning an economic profit which could be increased by lowering output.
c. The firm is maximizing its economic profit.
d. The firm is suffering an economic loss which could be decreased by raising output.
e. The firm is suffering an economic loss which could be decreased by lowering output.
B
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Based on these numbers, what are your yearly explicit and implicit costs of going back to school?
"A single-price monopoly will always charge a price that is on the elastic range of the demand for the monopoly's output." Explain why the previous statement is correct or incorrect
What will be an ideal response?