This firm is producing at its profit-maximization output This firm should produce less since MC < MR. This firm should produce more since MR > MC Unless we know the fixed cost, we don't have enough information to judge whether the firm is producing the right amount
This firm is producing at its profit-maximization output This firm should produce less since MC < MR. This firm should produce more since MR > MC Unless we know the fixed cost, we don't have enough information to judge whether the firm is producing the right amount
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter8: Perefect Competition
Section: Chapter Questions
Problem 5SQP
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![Question 45
For a perfectly competitive firm, its current output is 1000 unit at which MC = 15, while the market price is 20,
%3D
This firm is producing at its profit-maximization output
This firm should produce less since MC < MR.
This firm should produce more since MR > MC
Unless we know the fixed cost, we don't have enough information to judge whether the firm is producing the right amount
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Transcribed Image Text:Question 45
For a perfectly competitive firm, its current output is 1000 unit at which MC = 15, while the market price is 20,
%3D
This firm is producing at its profit-maximization output
This firm should produce less since MC < MR.
This firm should produce more since MR > MC
Unless we know the fixed cost, we don't have enough information to judge whether the firm is producing the right amount
« Previous
No new data to save. Last check
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