The figure shows Said's Mugs (Cups) costs of producing mugs. The mug market is perfectly competitive If the market price of a mug falls to Said considers to temporarily shut down. At that point, his average fxed costs of production is and his firm's marginal product is 20 MC ATC AVC 10 15 20 25 30 35 40 45 50 Quantity (mugs per day) Select one a. $20, $0.4. maximized b. $14. $0 7. rising C $8, $0 3, declining O d so, so, minimized
The figure shows Said's Mugs (Cups) costs of producing mugs. The mug market is perfectly competitive If the market price of a mug falls to Said considers to temporarily shut down. At that point, his average fxed costs of production is and his firm's marginal product is 20 MC ATC AVC 10 15 20 25 30 35 40 45 50 Quantity (mugs per day) Select one a. $20, $0.4. maximized b. $14. $0 7. rising C $8, $0 3, declining O d so, so, minimized
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter8: Perfect Competition
Section: Chapter Questions
Problem 7SCQ: If new technology in a perfectly competitive market brings about a substantial reduction in costs of...
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