Refer to Table 9.1. If the market price is $10, then for this firm to maximize profits it should produce ________ unit(s) of output.

A) zero
B) one
C) two
D) three

Question

Refer to Table 9.1. If the market price is $10, then for this firm to maximize profits it should produce ________ unit(s)  of output.A)  zeroB)  oneC)  twoD)  three

Xiomara Chinchilla · Accepted Answer

Final Answer : A, Explanation :  The firm should produce zero units because the market price ($10) is less than the average variable cost (AVC) at all levels of output, meaning the firm would incur a loss by producing.

Refer to Table 9.1. If the market price is $10, then for this firm to maximize profits it should produce ________ unit(s) of output.

A) zero
B) one
C) two
D) three

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