Suppose Cindy's Glove Factory operates in a perfectly maximizing level of output. Suppose further that at this level of production its average total cost o producing mittens is $18, average variable cost is $16, and marginal cost is $14. Cindy should Select one: OA decrease production since it will increase her economic profit. O B. continue to produce since she is earning a positive economic profit. OC. increase production since it will increase her economic profit. O D. continue to produce since she is covering some of her fixed costs. O E. shut down immediately.
Suppose Cindy's Glove Factory operates in a perfectly maximizing level of output. Suppose further that at this level of production its average total cost o producing mittens is $18, average variable cost is $16, and marginal cost is $14. Cindy should Select one: OA decrease production since it will increase her economic profit. O B. continue to produce since she is earning a positive economic profit. OC. increase production since it will increase her economic profit. O D. continue to produce since she is covering some of her fixed costs. O E. shut down immediately.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Suppose Cindy's Glove Factory operates in a perfectly competitive market and is producing its profit-
maximizing level of output. Suppose further that at this level of production its average total cost of
producing mittens is $18, average variable cost is $16, and marginal cost is $14. Cindy should
Select one:
OA decrease production since it will increase her economic profit.
O B. continue to produce since she is earning a positive economic profit.
OC. increase production since it will increase her economic profit.
O D. continue to produce since she is covering some of her fixed costs.
O E. shut down immediately.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff97c05b8-d99c-4451-8184-9b650f0e4a15%2F3aa45b40-37a7-42cf-8339-a2b88014b3ea%2Fge0uyv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose Cindy's Glove Factory operates in a perfectly competitive market and is producing its profit-
maximizing level of output. Suppose further that at this level of production its average total cost of
producing mittens is $18, average variable cost is $16, and marginal cost is $14. Cindy should
Select one:
OA decrease production since it will increase her economic profit.
O B. continue to produce since she is earning a positive economic profit.
OC. increase production since it will increase her economic profit.
O D. continue to produce since she is covering some of her fixed costs.
O E. shut down immediately.
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