Revenue and cost (dollars per unit) MC AVC 50 ..... 40 10 10 20 30 40 50 Output (units per day) The above figure illustrates a perfectly competitive firm. If the market price is $40 a unit, to maximize its profit (or minimize its loss) the firm should O A) produce 40 units. B) produce 30 units. C) shut down. O D) produce more than 10 and less than 30 units. O E) produce more than 30 units and less than 40 units.. 30 20

Revenue and cost (dollars per unit) MC AVC 50 ..... 40 10 10 20 30 40 50 Output (units per day) The above figure illustrates a perfectly competitive firm. If the market price is $40 a unit, to maximize its profit (or minimize its loss) the firm should O A) produce 40 units. B) produce 30 units. C) shut down. O D) produce more than 10 and less than 30 units. O E) produce more than 30 units and less than 40 units.. 30 20

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter23: Profit Maximization

Section: Chapter Questions

Problem 5E

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