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7 Sep 2018
20) Suppose a perfectly competitive firm is producing a level of output for which price equals average total cost, and average total cost is less than marginal cost. In order to maximize its profits, the firm should A) reduce its output. B) expand its output. C) shut down. D) increase the market price. E) not change its output.
20) Suppose a perfectly competitive firm is producing a level of output for which price equals average total cost, and average total cost is less than marginal cost. In order to maximize its profits, the firm should A) reduce its output. B) expand its output. C) shut down. D) increase the market price. E) not change its output.
Jamar FerryLv2
8 Sep 2018