At the Level of Output Where Marginal Revenue Equals Marginal

question 180

Multiple Choice

At the level of output where marginal revenue equals marginal cost,assume that the price of a competitive firm's product is between the firm's average total cost curve and its average variable cost curve.In this case the firm would

• A)decrease output to reduce the costs.
• B)continue to operate in the short run.
• C)shut down.
• D)increase output to increase profit.
• E)continue to operate indefinitely.

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Definitions:

Erased

Refers to the removal of lines, marks, or notations from drawings or documents, often during the revision process.

Dimensions

Measurements that define the size, shape, scale, or extent of something, usually represented in length, width, and height.

Engineering Drawings

Detailed plans or diagrams that communicate the design, dimensions, and manufacturing requirements of engineering objects or systems.

Width

The measurement of an object from one side to the other.