In a perfectly competitive market, a firm finds that at its MR=MC output level, the Total Variable Cost (TVC) equals $350, Total Fixed Cost (TFC) equals $100, and Total Revenue equals $650. The firm should Group of answer choices shut down in the short run. continue to produce because it will realize an economic profit. continue to produce because it can still cover its total variable costs.

In a perfectly competitive market, a firm finds that at its MR=MC output level, the Total Variable Cost (TVC) equals $350, Total Fixed Cost (TFC) equals $100, and Total Revenue equals $650. The firm should Group of answer choices shut down in the short run. continue to produce because it will realize an economic profit. continue to produce because it can still cover its total variable costs.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Perefect Competition

Section: Chapter Questions

Problem 12SQ

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