Perez Lumber Company sells surfboards in a perfectly competitive market. The marginal cost of surfboards at the current output of 445 feet is $3.57 per foot. The price of surfboards is $3.57 per foot, and the minimum possible average variable cost of producing surfboards is $3.88 per foot. To maximize profit, it should increase monthly output above 445 board feet. O continue producing at its current output level. shut down immediately. decrease monthly output below 445 board feet.

Perez Lumber Company sells surfboards in a perfectly competitive market. The marginal cost of surfboards at the current output of 445 feet is $3.57 per foot. The price of surfboards is $3.57 per foot, and the minimum possible average variable cost of producing surfboards is $3.88 per foot. To maximize profit, it should increase monthly output above 445 board feet. O continue producing at its current output level. shut down immediately. decrease monthly output below 445 board feet.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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