Assume a Perfectly Competitive Firm Sells Its Output for $150

question 69

Multiple Choice

Assume a perfectly competitive firm sells its output for $150 per unit.It currently produces 6,000 units of output,at which output level it minimizes its average variable cost at $152 per unit.Assuming it wants to maximize its profits,it should:

• A) increase output.
• B) decrease output, but not shut down.
• C) maintain its current output rate.
• D) shut down.

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Definitions:

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