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In the Short Run, Which of the Following Should the Firm

Question 13

Multiple Choice

In the short run, which of the following should the firm in Exhibit 10­4 do? A) Produce 10 units at a price of $36 per unit. B) Produce 10 units at a price of $24 per unit. C) Produce 10 units at a price of $40 per unit. D) Produce 15 units at a price of $32 per unit. E) We cannot determine what the firm should do without knowing its average variable cost. In the short run, which of the following should the firm in Exhibit 10­4 do?


A) Produce 10 units at a price of $36 per unit.
B) Produce 10 units at a price of $24 per unit.
C) Produce 10 units at a price of $40 per unit.
D) Produce 15 units at a price of $32 per unit.
E) We cannot determine what the firm should do without knowing its average variable cost.

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