A Firm Is Currently Operating Where the MC of the Last

question 3

Multiple Choice

A firm is currently operating where the MC of the last unit produced = $64, and the MR of this unit = $70. What would you advise this firm to do?

• A) Shut down.
• B) Increase output.
• C) Stay at current output.
• D) Decrease output.
• E) Decrease price.

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Definitions:

Iced Tea

A chilled beverage made by cooling brewed tea and typically served with ice, sometimes sweetened or flavored.

Complementary Goods

Products or services that are typically consumed together, such that demand for one increases demand for the other.

Coffee

A brewed drink prepared from roasted coffee beans, which are the seeds of berries from the Coffea plant, and is one of the most popular beverages globally.

Lawnmowers

Equipment used in the maintenance of lawns and gardens that cuts grass to an even height, available in various types including push, riding, and robotic mowers.