Suppose That at the Current Level of Output, Price =

question 71

Multiple Choice

Suppose that at the current level of output, price = $12, MC = $4, AVC = $7, and ATC = $11. Which of the following is TRUE?

• A) The firm should decrease output.
• B) The firm should shut down.
• C) The firm should increase output.
• D) The firm should maintain the current level of output.

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