xceed marginal revenue, then: me firm should increase its production level. he firm's average costs exceed average revenue. me firm should decrease its production level. he firm should shut down. "hen Revenue = 200- 20² and Cost = 8Q, then the profit maximizing level output
xceed marginal revenue, then: me firm should increase its production level. he firm's average costs exceed average revenue. me firm should decrease its production level. he firm should shut down. "hen Revenue = 200- 20² and Cost = 8Q, then the profit maximizing level output
Chapter23: Profit Maximization
Section: Chapter Questions
Problem 11E
Related questions
Question
![19. For a firm with Revenue = 200- 20² and Cost = 8Q. If marginal costs is found to
exceed marginal revenue, then:
a) The firm should increase its production level.
b) The firm's average costs exceed average revenue.
c) The firm should decrease its production level.
d) The firm should shut down.
20. When Revenue = 200- 20² and Cost = 8Q, then the profit maximizing level output
is:
a) 3
b) 4.5.
c) 8.
d) 24.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F469c86b4-1af9-4766-9224-a55e412c2c0c%2F19e1c0f0-d0ea-4f71-9362-8f30e52ec2f2%2Fh24yhxi_processed.png&w=3840&q=75)
Transcribed Image Text:19. For a firm with Revenue = 200- 20² and Cost = 8Q. If marginal costs is found to
exceed marginal revenue, then:
a) The firm should increase its production level.
b) The firm's average costs exceed average revenue.
c) The firm should decrease its production level.
d) The firm should shut down.
20. When Revenue = 200- 20² and Cost = 8Q, then the profit maximizing level output
is:
a) 3
b) 4.5.
c) 8.
d) 24.
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