Multiple Choice
You're called in as a consultant: Price is $24. At a production level of 200 units, MC = MR, AFC = $6, and AVC = $16. What do you advise this firm to do?
A) Increase output.
B) Decrease output.
C) Shut down operations.
D) Stay at 200 units; the firm is earning $400 profit.
E) Stay at 200 units; the firm is minimizing losses of $200.
Correct Answer:
Verified
Correct Answer:
Verified
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