What the firm should do in given situation, Microeconomics

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What the firm should do in given situation

T-Shirt Enterprises is selling in a purely competitive market. It is producing 3,000 units, selling them for $2 each. At this level of output, the average total cost is $2.50 and the average variable cost is $2.20. Based on these data, the firm should

shut down in the short run.
decrease output to 2,500 units.
ontinue to produce 3,000 units.
increase output to 3,500 units.

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Request for Solution File

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Microeconomics: What the firm should do in given situation

Reference No:- TGS048398

Have a Question? (oR Write a Review)

Recent Questions Asked Microeconomics

Q : Explain how distributing company would defend against claim

Q : What is the amount of the cost of goods sold

Q : General journal entry to record thetransactions

Q : What was the balance in receivables

Q : What the firm should do in given situation

Q : How much discount would the customer be entitled to

Q : Aggressive advertising campaign

Q : What would be the payment

Q : What is the cost function for the new product line

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Microeconomics: What the firm should do in given situation

Reference No:- TGS048398

Recent Questions Asked Microeconomics

Q : Explain how distributing company would defend against claim

Q : What is the amount of the cost of goods sold

Q : General journal entry to record thetransactions

Q : What was the balance in receivables

Q : What the firm should do in given situation

Q : How much discount would the customer be entitled to

Q : Aggressive advertising campaign

Q : What would be the payment

Q : What is the cost function for the new product line

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