In a perfectly competitive market, a firm finds that at its MR=MC output level, the Total Variable Cost (TVC) equals $350, Total Fixed Cost (TFC) equals $100, and Total Revenue equals $650. The firm should Group of answer choices shut down in the short run. continue to produce because it will realize an economic profit. continue to produce because it can still cover its total variable costs.
In a perfectly competitive market, a firm finds that at its MR=MC output level, the Total Variable Cost (TVC) equals $350, Total Fixed Cost (TFC) equals $100, and Total Revenue equals $650. The firm should Group of answer choices shut down in the short run. continue to produce because it will realize an economic profit. continue to produce because it can still cover its total variable costs.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
In a perfectly competitive market, a firm finds that at its MR=MC output level, the Total Variable Cost (TVC) equals $350, Total Fixed Cost (TFC) equals $100, and Total Revenue equals $650. The firm should
Group of answer choices
shut down in the short run.
continue to produce because it will realize an economic profit.
continue to produce because it can still cover its total variable costs.
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