Exhibit 16 Short-Run Cost Curves for a Competitive Firm

question 44

Multiple Choice

Exhibit 16 Short-run cost curves for a competitive firm

-In Exhibit 7-16,suppose the firm faces a price of $80 per unit.How much should the firm produce to earn the largest possible profit?

• A) 2 units per hour.
• B) 4 units per hour.
• C) 5 units per hour.
• D) 6 units per hour.

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Definitions:

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