Consider the figure. At the price of $4, the firm's short-run decision should be to OA. continue producing because it is making a positive profit. OB. decrease production. OC. stay open or stop producing because it is losing exactly all its fixed costs. OD. exit the market. -C Dollars per Unit Output MC ATC AV
Consider the figure. At the price of $4, the firm's short-run decision should be to OA. continue producing because it is making a positive profit. OB. decrease production. OC. stay open or stop producing because it is losing exactly all its fixed costs. OD. exit the market. -C Dollars per Unit Output MC ATC AV
Chapter8: Perfect Competition
Section: Chapter Questions
Problem 4.7P
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