Answer to Question #227565 in Economics for Sandrine Mayombo

Question #227565

In a perfectly competitive industry, the market price is R20. An individual firm produces output at which MC = R25. What should the firm do to maximise profits or to minimise losses in the short run?

  •  A. they should shut down.
  •  B. they should increase production.
  •  C. they should decrease production.
  •  D. they should leave the output unchanged
1
Expert's answer
2021-08-19T12:25:45-0400

A. they should shut down.

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