A Competitive Firm Operating in the Short Run Is Producing

question 200

Essay

A competitive firm operating in the short run is producing at the output level at which ATC is at a minimum.If ATC = $8 and MR = $9, in order to maximize profits (or minimize losses), this firm should:
A.increase output.
B.reduce output.
C.shut down.
D.do nothing; the firm is already maximizing profits.

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Definitions:

Peripheral Nervous System

Part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord.

Efferent Fibers

Nerve fibers that carry signals away from the central nervous system to the peripheral effectors, such as muscles and glands.

Cranial Nerves

Twelve pairs of nerves that emerge directly from the brain, not through the spinal column, serving various sensory and motor functions of the head and neck.

Asymmetry

The lack of equality or equivalence between parts or aspects of something; not symmetrical.