Multiple Choice
A firm with market power is producing a level of output at which price is $8,marginal revenue is $5,average variable cost is $6,and marginal cost is $10.In order to maximize profit,the firm should
A) decrease price.
B) increase price.
C) keep price the same.
D) increase output.
E) shut down.
Correct Answer:
Verified
Correct Answer:
Verified
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