Question: Motzi Bread in Baltimore bakes delicious bread. Bread shops are a (perfectly) competitive business in Baltimore. At its current production level, Motzi Bread estimates the

Motzi Bread in Baltimore bakes delicious bread. Bread shops are a (perfectly) competitive business in Baltimore. At its current production level, Motzi Bread

estimates the following:

Price per loaf of bread: $6

Average Variable Cost: $4

Average Total Cost: $7

Marginal Cost: $5

Based on this information and your knowledge of economics, which of the following should Motzi do?

Keep production at the same level.

Decrease production

We need more information.

Shut down immediately

Increase Production

Motzi Bread in Baltimore bakes delicious bread. Bread shops are a (perfectly)

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