Solved

Consider the Total Cost and Revenue Curves Shown Below,for Two

Question 80

Multiple Choice

Consider the total cost and revenue curves shown below,for two perfectly competitive firms,Firm A and Firm B. Consider the total cost and revenue curves shown below,for two perfectly competitive firms,Firm A and Firm B.   FIGURE 9-4 -Refer to Figure 9-4.Given its total cost and revenue curves,Firm A should A) build another plant to reap scale economies. B) produce zero output. C) continue production,as it is earning positive profits. D) maximize its profits by producing that level of output such that the slope of the TC curve is equal to the slope of the TR curve. E) maximize its profits by producing that level of output such that the slope of the TVC curve is equal to the slope of the TR curve. FIGURE 9-4
-Refer to Figure 9-4.Given its total cost and revenue curves,Firm A should


A) build another plant to reap scale economies.
B) produce zero output.
C) continue production,as it is earning positive profits.
D) maximize its profits by producing that level of output such that the slope of the TC curve is equal to the slope of the TR curve.
E) maximize its profits by producing that level of output such that the slope of the TVC curve is equal to the slope of the TR curve.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions