Suppose a firm producing shoes in a perfectly competitive industry has an output is 100 shoes...

 

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Suppose a firm producing shoes in a perfectly competitive industry has an output is 100 shoes per day, the marginal cost of the last pair of shoes produced is $54, and the average revenue per pair of shoes is $60. In the short run, this firm should O increase output until average revenue is equal to marginal cost. O maintain production at the current level. Oshut down. O reduce output. Suppose a firm producing shoes in a perfectly competitive industry has an output is 100 shoes per day, the marginal cost of the last pair of shoes produced is $54, and the average revenue per pair of shoes is $60. In the short run, this firm should O increase output until average revenue is equal to marginal cost. O maintain production at the current level. Oshut down. O reduce output.

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