Advanced Placement (AP), 09.04.2021 20:00 juliapreciiado
2. Assume a perfectly competitive firm is currently producing 100 units of output. Its marginal cost
is $6 and rising at that output quantity. Its average variable cost is $7, and its average fixed cost is $3. If
the product's price is $6, which of the following will the firm do in the short run to maximize its profit?
a. Shut Down
b. Produce, but less than 100 Units of output.
C. Produce more than 100 unites of output.
d. Continue to produce at exactly 100 units of output.
e. Increase its price above $6.
Answers: 3
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2. Assume a perfectly competitive firm is currently producing 100 units of output. Its marginal cost...
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