Currently the firm is producing at a profit maximizing quantity of output and has a total revenue of $5000. Variable costs are $4000 and Fixed costs are $2000. Which of the following is true for this firm in the short run: A.The firm should continue producing at a loss B.The firm should shut down immediately C.The firm should continue to produce since it is making profit D.The firm should adjust (increase or decrease) output

Marginal cost is the additional cost of producing one more unit of a good. Marginal revenue is the…

Answered: Currently the firm is producing at a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Currently the firm is producing at a profit maximizing quantity of output and has a total revenue of $5000. Variable costs are $4000 and Fixed costs are $2000. Which of the following is true for this firm in the short run:

	A.	The firm should continue producing at a loss
	B.	The firm should shut down immediately
	C.	The firm should continue to produce since it is making profit
	D.	The firm should adjust (increase or decrease) output

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