A firm is producing 10,000 units of output. Price at this output level is $16.00 for each
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Question:
A firm is producing 10,000 units of output. Price at this output level is $16.00 for each unit, and marginal revenue is $13.00. The average per unit cost is $12.00, and the marginal cost is $12.50. From this information, we can conclude that the business
A. Enjoys economies of scale
B. Is maximizing profit at this level
C. Should produce less
D. Should produce more
Expert Answer:
Given firm is producing 10000 units of output Price at this output level is 16 Avera... View the full answer
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