At the current level of output, the following data exists: Price = $20 Marginal cost = $6
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Question:
At the current level of output, the following data exists:
Price = $20
Marginal cost = $6
Average variable cost = $10
What must be true at this level of output?
Question options:
The firm should lower the price.
The firm should stay at the same level of output.
The firm should shut down.
The firm should increase output.
The firm should decrease output.
What should the firm do when it faces the following conditions:
Average total cost = $60
Average variable cost = $40
Marginal cost = $35
Marginal revenue = $35
A lower the price
B shut down
C increase production
D decrease production
e raise the price
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