ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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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
O increase monthly output above 445 board feet.
O continue producing at its current output level.
shut down immediately.
O decrease monthly output below 445 board feet.
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Transcribed Image Text: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 O increase monthly output above 445 board feet. O continue producing at its current output level. shut down immediately. O decrease monthly output below 445 board feet.
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