Assume a certain competitive price-taker firm is producing Q = 1,000 units of output. At Q = 1,000 . the firm's marginal cost equals $15 and its average total cost equals $11 . The firm sells its output for $12 per unit. To maximize its profit, the firm should
a. increase its output.
b. continue to produce 1,000 units.
c. decrease its output, but continue to produce.
d. shut down.
C
Economics
You might also like to view...
In spite of having no natural resources, a country like _____ was able to make itself one of the wealthiest countries in the world because it allowed private ownership
a. India b. Poland c. Hungary d. Hong Kong e. China
Economics
Normal profit and the cost of capital are the same concept
Indicate whether the statement is true or false
Economics