Perez Lumber Company sells surfboards in a perfectly competitive market. The marginal cost of surfboards at the current output of 445 feet is $3.57 per foot. The price of surfboards is $3.57 per foot, and the minimum possible average variable cost of producing surfboards is $3.88 per foot. To maximize profit, it should increase monthly output above 445 board feet. O continue producing at its current output level. shut down immediately. decrease monthly output below 445 board feet.

Perez Lumber Company sells surfboards in a perfectly competitive market. The marginal cost of surfboards at the current output of 445 feet is $3.57 per foot. The price of surfboards is $3.57 per foot, and the minimum possible average variable cost of producing surfboards is $3.88 per foot. To maximize profit, it should increase monthly output above 445 board feet. O continue producing at its current output level. shut down immediately. decrease monthly output below 445 board feet.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Perefect Competition

Section: Chapter Questions

Problem 5SQP

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