Consider a Firm with the Following Cost and Revenue Information

question 217

Multiple Choice

Consider a firm with the following cost and revenue information: ATC = $8, AVC = $7, and MR = MC = $6. If the firm produces Q = 60 in the short run, it:

• A) is minimizing losses.
• B) makes a total loss of $60.
• C) should produce more output.
• D) is making a mistake and should shut down.
• E) is maximizing total profit.