Business, 16.04.2020 01:06 katelynzaro

A perfectly competitive firm that makes car batteries has a fixed cost of $10,000 per month. The market price at which it can sell its output is $100 per battery. The firm’s minimum AVC is $105 per battery. The firm is currently producing 500 batteries a month (the output level at which MR = MC). This firm is making a and should production. loss; shut down profit; increase loss; increase profit; shut down

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A perfectly competitive firm that makes car batteries has a fixed cost of $10,000 per month. The mar...