Question
A company is producing 20,000 units. At this output level, MR is 20$ and MC is 25$. The firm sells each unit for 35$ and
A company is producing 20,000 units. At this output level, MR is 20$ and MC is 25$. The firm sells each unit for 35$ and average total cost is 30$. What can we conclude from this information?
A)The company needs to cut production
B)The company is making a loss
C)Not enough information is provided
D)The company needs to increase production
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Using Econometrics A Practical Guide
Authors: A. H. Studenmund
7th edition
013418274X, 978-0134182742
