Revenue and cost (dollars per unit) MC AVC 50 40 30 20 10 10 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. shut down. B. produce more than 10 and less than 30 units. C. produce more than 30 units and less than 40 units.. D. produce 30 units. O E. produce 40 units. 20

Revenue and cost (dollars per unit) MC AVC 50 40 30 20 10 10 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. shut down. B. produce more than 10 and less than 30 units. C. produce more than 30 units and less than 40 units.. D. produce 30 units. O E. produce 40 units. 20

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Perefect Competition

Section: Chapter Questions

Problem 5SQP

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