Multiple Choice
A perfectly competitive firm finds itself in the following situation: TR = $10 000; TC = $8000; TFC = $2000; P = $8; and MC = $7. The firm should:
A) do nothing, as it is already maximizing profits.
B) increase production.
C) shut down.
D) decrease production, but not shut down.
Correct Answer:
Verified
Correct Answer:
Verified
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