In a Perfectly Competitive Market,the Market Price Is $8

question 108

Multiple Choice

In a perfectly competitive market,the market price is $8.An individual firm is producing the output at which MC = $8.AVC at that output is $10.What should the firm do to maximize its economic profit in the short run?

• A)shut down
• B)expand output
• C)contract output but continue to produce
• D)leave output unchanged
• E)raise the price

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