Suppose that the following data are observed for a perfectly competitive firm: output = 5000 units, market price = $1, fixed costs = $2000, variable costs = $1000 and margins cost = $1.25. To maximize profits the firm should Select one: a. not change output b. expand output C. reduce output d. increase the market price е. shut down
Suppose that the following data are observed for a perfectly competitive firm: output = 5000 units, market price = $1, fixed costs = $2000, variable costs = $1000 and margins cost = $1.25. To maximize profits the firm should Select one: a. not change output b. expand output C. reduce output d. increase the market price е. shut down
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter8: Perefect Competition
Section: Chapter Questions
Problem 10SQP
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![Suppose that the following data are observed for a perfectly competitive firm: output = 5000 units, market price = $1, fixed costs = $2000, variable costs = $1000 and margins cost = $1.25. To maximize profits the firm should
Select one:
a.
not change output
b.
expand output
C.
reduce output
d.
increase the market price
е.
shut down](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff5d93f92-43f2-4e21-9bbd-576203fb45e7%2F32f7f800-1900-4ab1-8849-43ba16a1fbac%2F1yxzz6p_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose that the following data are observed for a perfectly competitive firm: output = 5000 units, market price = $1, fixed costs = $2000, variable costs = $1000 and margins cost = $1.25. To maximize profits the firm should
Select one:
a.
not change output
b.
expand output
C.
reduce output
d.
increase the market price
е.
shut down
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