zachtsmith2001
zachtsmith2001
24.04.2020 • 
Business

Scenario 14-2 Assume a certain firm is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $20 and its average total cost equals $25. The firm sells its output for $30 per unit. Refer to Scenario 14-2. To maximize its profit, the firm should a. shut down. b. continue to produce 1,000 units. c. decrease its output but continue to produce. d. increase its output.

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