Multiple Choice
Equilibrium price is $17 in a perfectly competitive market. For a perfectly competitive firm, MR = MC at 275 units of output. At 275 units, ATC is $19, and AVC is $13. The best policy for this firm is to __________ in the short run. Also, total fixed cost equals __________ for this firm.
A) continue to produce; $3,575
B) shut down; $699
C) continue to produce; $1,650
D) shut down; $2,796
E) continue to produce; $6
Correct Answer:
Verified
Correct Answer:
Verified
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