Multiple Choice
The Razor-Thin Disposable Razor Company is a perfectly competitive firm producing where MR = MC. The current market price of a disposable razor is $3.00. The firm sells 1,800 disposable razors. Its AVC is $2.00 and its AFC is $1.50. What should Razor-Thin do?
A) Continue to produce because price exceeds AVC.
B) Shut down and produce zero razors because price is less than ATC.
C) Decrease production so that AVC will decrease.
D) Increase production so that AFC will decrease.
Correct Answer:
Verified
Correct Answer:
Verified
Q19: A firm that is earning a positive
Q20: The Taste Freeze Ice Cream Company is
Q21: Refer to the information provided in Figure
Q22: Refer to Scenario 9.10 below to answer
Q23: Refer to Scenario 9.7 below to answer
Q25: Engineers for The Giffen Record Company determine
Q26: A firm that has increasing returns to
Q27: Refer to the information provided in Figure
Q28: Refer to Scenario 9.6 below to answer
Q29: If TR > TVC but TR <