The market price for wallets is $20 . Your technology is such that at your most efficient production point, the average total cost of producing a wallet is $2.50 . Your manager runs into your office and shouts, "Boss! Average costs are rising! Average costs are rising!" To make a profit-maximizing decision, you should
a. definitely decrease production
b. immediately stop production
c. completely ignore your manager
d. ask the manager about the marginal cost
e. ask the manager about the average total cost
D
Economics
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What will be an ideal response?
Economics
As firms' expected profit from new capital projects falls,
A) the supply of loanable funds will shift rightward. B) the supply of loanable funds will shift leftward. C) the demand for loanable funds will shift rightward. D) the demand for loanable funds will shift leftward. E) projects must become more profitable
Economics