Suppose that marginal revenue for a perfectly competitive firm is $20 . When the firm produces 10 units, its marginal cost is $20, its average total cost is $22, and its average variable cost is $17
Then to maximize its profit in the short run, the firm A) should stay open and incur an economic loss of $20.
B) must increase its output to increase its profit.
C) must decrease its output to increase its profit.
D) should shut down.
E) should not change its production because it is already maximizing its profit and is making an economic profit.
A
Economics
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Indicate whether the statement is true or false.
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The federal government awards a patent holder the exclusive right to make, use, and sell an invention for a period of
A) 20 years. B) 17 years. C) unlimited period. D) 100 years.
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