Suppose that the following data are observed for a perfectly competitive firm: output = 5000 units, market price = $1, fixed costs = $2000, variable costs = $1000 and margins cost = $1.25. To maximize profits the firm should Select one: a. not change output b. expand output C. reduce output d. increase the market price е. shut down

Suppose that the following data are observed for a perfectly competitive firm: output = 5000 units, market price = $1, fixed costs = $2000, variable costs = $1000 and margins cost = $1.25. To maximize profits the firm should Select one: a. not change output b. expand output C. reduce output d. increase the market price е. shut down

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Perefect Competition

Section: Chapter Questions

Problem 10SQP

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