Suppose product price is fixed at $24 MR MC at Q 200 AFC $6 AVC $16 What do you advise this firm to do a Decrease output b Stay at the current output the firm is losing $200 c Increase output d Stay at the current output the firm is earning a profit of$400

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Suppose product price is fixed at $24; MR = MC at Q = 200; AFC =$6; AVC = $16. What do you advise this firm

Suppose product price is fixed at $24; MR = MC at Q = 200; AFC =$6; AVC = $16. What do you advise this firm to do?

	a.	Decrease output.
	b.	Stay at the current output; the firm is losing $200.
	c.	Increase output.
	d.	Stay at the current output; the firm is earning a profit of$400.

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