Consider a firm with the following cost and revenue information: ATC = $8, AVC = $7, and MR = MC = $6 . If the firm produces Q = 60 in the short run, it:
a. is minimizing losses.
b. makes a total loss of $60.
c. should produce more output.
d. is making a mistake and should shut down.
e. is maximizing total profit.
d
Economics
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A corrective subsidy induces the ________ to the socially optimal level
A) consumers of a negative externality to increase the quantity consumed B) producers of a negative externality to increase the quantity produced C) consumers of a positive externality to increase the quantity consumed D) producers of a positive externality to reduce the quantity produced
Economics
Refer to Table 9-11. With trade, what is the total gain in clock production?
A) 150 B) 300 C) 2,100 D) 2,250
Economics