K Consider the figure. At the price of $3, the firm's short-run decision should be to OA decrease production OB. stop producing because variable costs cannot be covered OC. continue producing because it is making a positive profit OD. exit the market. Dollars per Unt Output MC ATC AVC

K Consider the figure. At the price of $3, the firm's short-run decision should be to OA decrease production OB. stop producing because variable costs cannot be covered OC. continue producing because it is making a positive profit OD. exit the market. Dollars per Unt Output MC ATC AVC

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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K-
Consider the figure. At the price of 53, the firm's short-run decision should be to
OA decrease production
OB. stop producing because variable costs cannot be covered
OC. continue producing because it is making a positive profit
OD. exit the market.
Dollars per Unt
Output
MC
ATC
AVC
odu

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