If, at the Point Where MR = MC, the Firm

question 182

Multiple Choice

If, at the point where MR = MC, the firm incurs losses, in the short run the firm should:

• A) shut down.
• B) increase output.
• C) decrease output.
• D) continue at its current output if P > AVC.
• E) continue at its current output if P > ATC.

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