Suppose the Variable Cost to Produce Quantity Q Is TC(q)=

question 65

Multiple Choice

Suppose the variable cost to produce quantity q is TC(q) = q²/10. Suppose the firm is a price- taker and the market price is p = 100; its fixed cost is currently 6600. If this firm wants to stay in business, it has to:

• A)reduce its fixed cost to 6,000.
• B)do nothing.
• C)reduce its fixed cost to zero.
• D)reduce its fixed cost to 5,000.

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