b. Consider a perfectly competitive firm in the following position: output = 4000 units, marketprice = $1, total fixed costs = $2000, total variable costsmaximize profits the firm should increase or reduce its output? Explain.$4500, and marginal cost =$1. To

Economics is a branch of social science that describes and analyzes the behaviors and decisions…

b. Consider a perfectly competitive firm in the following position: output 4000 units, market $1, total fixed costs $2000, total variable costs $4500, and marginal cost = $1. To %3D price maximize profits the firm should increase or reduce its output? Explain.

b. Consider a perfectly competitive firm in the following position: output 4000 units, market $1, total fixed costs $2000, total variable costs $4500, and marginal cost = $1. To %3D price maximize profits the firm should increase or reduce its output? Explain.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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