Cynthia sells walnut cookies in a perfectly competitive market where the market price is $10 per cookie. Cynthia produces 500 cookies per month with a marginal cost of $5 per cookie, an average variable cost of $3 per cookie, and an average total cost of $7 per cookie. Cynthia is likely to:
a. increase the production of cookies to maximize profit

b. decrease the production of cookies but stay open.
c. continue to maintain current production levels to minimize her losses.
d. shut down immediately to minimize her losses.

a

Economics

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A) is the increment in total cost of a firm when the worker is hired. B) is the additional revenue that the worker brings in to the firm. C) is the maximum price at which a product can be sold in a market. D) equals the average product of a firm divided by the marginal product of the worker.

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When government pays individuals to purchase pollution-reducing devices, that payment is called a subsidy

Indicate whether the statement is true or false

Economics