Suppose That in a Perfectly Competitive Industry,the Market Price of the Product

question 19

Multiple Choice

Suppose that in a perfectly competitive industry,the market price of the product is $12.Firm A is producing the output level at which average total cost equals marginal cost,both of which are $10.To maximize its profits,Firm A should

• A)reduce its output.
• B)expand its output.
• C)leave its output unchanged.
• D)increase its advertising.
• E)change the price of the product.

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Definitions:

Exact Cell Address

The specific location of a cell in a spreadsheet, identified by the combination of its column letter and row number.

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A feature in software applications that allows users to choose how copied content will be inserted into a document.