Multiple Choice
A firm facing a downward sloping demand curve is producing a level of output at which price is $7,marginal revenue is $5,and average total cost,which is at its minimum value,is $3.In order to maximize profit,the firm should
A) decrease price.
B) keep price the same.
C) decrease output.
D) increase price.
E) both c and d
Correct Answer:
Verified
Correct Answer:
Verified
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