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Consider the Total Cost and Revenue Curves Shown Below,for Two

Question 142

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Consider the total cost and revenue curves shown below,for two perfectly competitive firms,Firm A and Firm B. Consider the total cost and revenue curves shown below,for two perfectly competitive firms,Firm A and Firm B.   FIGURE 9-4 -Refer to Figure 9-4.Given its total cost and revenue curves,Firm B should A) exit the industry. B) shut down temporarily. C) maximize its profits by producing that level of output such that the slope of the TC curve is equal to the slope of the TR curve. D) maximize its profits by producing that level of output such that the slope of the TVC curve is equal to the slope of the TR curve. E) produce the level of output where the TC curve intersects the TR curve. FIGURE 9-4
-Refer to Figure 9-4.Given its total cost and revenue curves,Firm B should


A) exit the industry.
B) shut down temporarily.
C) maximize its profits by producing that level of output such that the slope of the TC curve is equal to the slope of the TR curve.
D) maximize its profits by producing that level of output such that the slope of the TVC curve is equal to the slope of the TR curve.
E) produce the level of output where the TC curve intersects the TR curve.

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