8. Use the graph below to answer the following questions: 20 Figure 3 38 53 The market price = $5, the firm is producing 20 units: a. Is the firm maximizing profit? b. If the firm is not maximizing profit, in order to increase profit, the firm should (increase/ decrease) (output/plant size).

8. Use the graph below to answer the following questions: 20 Figure 3 38 53 The market price = $5, the firm is producing 20 units: a. Is the firm maximizing profit? b. If the firm is not maximizing profit, in order to increase profit, the firm should (increase/ decrease) (output/plant size).

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter12: Firms In Perfectly Competitive Markets

Section: Chapter Questions

Problem 6P

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Sh 11

Economics

8. Use the graph below to answer the following questions:
10
5
20
Figure 3
38
53
The market price = $5, the firm is producing 20 units:
a. Is the firm maximizing profit?
b. If the firm is not maximizing profit, in order to increase profit, the firm should (increase/
decrease)
(output/plant size).

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