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Question
A company produces at an output level where marginal revenue is equal to marginal cost and has the following revenue and cost levels:
Marginal cost curve intersects the average variable cost curve at $140.
Marginal cost curve intersects the average total cost curve at $150.
Marginal cost curve intersects the marginal revenue curve at $200.
What would you suggest this firm should do in the short run?
a. The firm should shut down.
b. The firm should continue to produce at a loss.
c. The firm should continue to produce at a profit level of $10 per unit.
d. The firm should continue to produce at a profit level of $50 per unit.
e. The firm should continue to produce at a profit level of $60 per unit.
Answer
This answer is hidden. It contains 60 characters.
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