Suppose a perfectly competitive firm faces the following short-run cost and revenue conditions: ATC= $12.00; AVC= $8.00; MC = $12.00; MR = $10.00. The firm should Select one: OA. increase price. OB. increase output. OC. change nothing. O D. decrease output.

Suppose a perfectly competitive firm faces the following short-run cost and revenue conditions: ATC= $12.00; AVC= $8.00; MC = $12.00; MR = $10.00. The firm should Select one: OA. increase price. OB. increase output. OC. change nothing. O D. decrease output.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Perefect Competition

Section: Chapter Questions

Problem 7SQ

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Question

Suppose a perfectly competitive firm faces the following short-run cost and revenue conditions:
ATC= $12.00; AVC = $8.00; MC = $12.00; MR = $10.00. The firm should
Select one:
O A. increase price.
OB. increase output.
OC. change nothing.
OD. decrease output.

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Don't use chatgpt, I will 5 upvotes Refer to Figure 14-1. If the market price is P2, in the short run, the perfectly competitive firm will earn ◻ positive economic profits. negative economic profits but will try to remain open. zero economic profits. negative economic profits and will shut down.
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