QUESTION 24Suppose a firm in a purely competitive market discovers that the price of its product is above its minimum AVC point but everywhere below ATC. Given this,the firmA. minimizes losses by producing at theB. maximizes profits byC. should closeD. should continue producing in the short run butminimum point of its AVC curveproducing where MR =immediatelyleave the industry in the long run if the situationATCpersists

A firm faces three production options in the short run based on a comparison between price, average…

QUESTION 24 Suppose a firm in a purely competitive market discovers that the price of its product is above its minimum AVC point but everywhere below ATC. Given this, the firm A. minimizes losses by producing at the O B. maximizes profits by O C. should close O D. should continue producing in the short run but immediately producing where MR = leave the industry in the long run if the situation persists minimum point of its AVC curve ATC

QUESTION 24 Suppose a firm in a purely competitive market discovers that the price of its product is above its minimum AVC point but everywhere below ATC. Given this, the firm A. minimizes losses by producing at the O B. maximizes profits by O C. should close O D. should continue producing in the short run but immediately producing where MR = leave the industry in the long run if the situation persists minimum point of its AVC curve ATC

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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