Suppose that in a perfectly competitive industry. the market price of the product is S6 A...

    

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Suppose that in a perfectly competitive industry. the market price of the product is S6 A firm is producing the output level at which average total cost equals marginal cost, both of which are $8. Average variable cost is $4 To maximize ts profits in the short run, the fiem should Question 24 Not yet answered Marked out of 050 P Flag question Select one: a expand its output. b. reduce its output. C. shut down. d. There is insufficient information to know leave its output unchanged. Previous page Next pag Suppose that in a perfectly competitive industry. the market price of the product is S6 A firm is producing the output level at which average total cost equals marginal cost, both of which are $8. Average variable cost is $4 To maximize ts profits in the short run, the fiem should Question 24 Not yet answered Marked out of 050 P Flag question Select one: a expand its output. b. reduce its output. C. shut down. d. There is insufficient information to know leave its output unchanged. Previous page Next pag

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Answer b reduce its output Explanation The fir... View the full answer