Multiple Choice
A firm is currently maximizing profits by producing at an output level at which marginal revenue is $5 and average variable cost is $5.25, the firm should:
A) shut-down at the current output level
B) increase its price to $5.25
C) increase its production until average variable cost is $5
D) decrease its production until marginal cost is $5
Correct Answer:
Verified
Correct Answer:
Verified
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