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.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Place free inquiry
Calculate the price
Learn more about our help with Assignments: Economics

Comments

No comments. Be the first!
Our fields of expertise
Submit Your Assignment. We Can Do It.
LATEST TUTORIALS
APPROVED BY CLIENTS
"assignmentexpert.com" is professional group of people in Math subjects! They did assignments in very high level of mathematical modelling in the best quality. Thanks a lot
Canada #339914 on Dec 2023