Equilibrium price is $10 in a perfectly competitive market. For a perfectly competitive firm, MR = MC at 1,200 units of output. At 1,200 units, ATC is $23,and AVC is $18.The best policy for this firm is to in the short run. Also, this firm earns of if it produces and sells 1,200 units.
A) shut down; losses; $15,600
B) shut down; losses; $9,600
C) continue to produce; losses; $15,600
D) continue to produce; profits; $15,600
Answers: 2
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Equilibrium price is $10 in a perfectly competitive market. For a perfectly competitive firm, MR = M...
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