Question
1) A perfectly competitive firm sells 200 units at a marketprice of $40 per unit. Its marginal cost is $50, and it incurs avariable cost
1) A perfectly competitive firm sells 200 units at a marketprice of $40 per unit. Its marginal cost is $50, and it incurs avariable cost of $10,000. To improve its profit or loss situation,this firm should ?
a) shut down
b) raise the price to $45 per unit
c. ?reduceoutput but not to zerod. ?increaseoutput sold to 300 unitse. continue to produce the present level of output
1) A perfectly competitive firm sells 200 units at a marketprice of $40 per unit. Its marginal cost is $50, and it incurs avariable cost of $10,000. To improve its profit or loss situation,this firm should ?
a) shut down
b) raise the price to $45 per unit
| c. | ?reduceoutput but not to zero d. ?increaseoutput sold to 300 units e. continue to produce the present level of output |
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Financial Accounting Tools for Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
5th Edition
9781118560952, 1118560957, 978-0470239803
