A firm operating in circumstances of perfect competition


A firm operating in circumstances of perfect competition faces a market price of $10. It is producing 2,000 units of output daily at a total cost of $19,000. This firm:

a. should increase its output to improve its profit position.

b. should reduce its output to improve its profit position.

c. should shut down to minimize its loss.

d. may or may not be at the output level yielding maximum profit—the information furnished is not sufficient to cover this point.

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Business Economics: A firm operating in circumstances of perfect competition
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