Answered

Explore Westonci.ca, the leading Q&A site where experts provide accurate and helpful answers to all your questions. Discover detailed solutions to your questions from a wide network of experts on our comprehensive Q&A platform. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

At its current level of output, a firm’s total revenue is greater than its total variable cost but less than its total cost. If the firm is producing at the point where marginal revenue is equal to marginal cost, what should the firm do to maximize in the short run? A. Increase price to increase revenue B. Decrease price to increase quantity C. Exit the market to minimize losses. D. Continue to produce at its current level of output to minimize losses. Or E. Shut down

Sagot :

Answer:

E

Explanation:

Lanuel

In order for the business firm to maximize profit in the short run, it should: D. continue to produce at its current level of output to minimize losses.

What is averge total cost?

Average total cost (ATC) can be defined as the overall cost of production incurred by a business firm divided by total output of production. Thus, it's calculated by dividing total cost by total output of production or by adding total variable cost (TVC) and total fixed cost (TFC) together.

In this scenario, this business firm should continue to produce at its current level of output to minimize losses, so as to maximize profit in the short run.

Read more on total cost here: https://brainly.com/question/21771855

#SPJ2

Thanks for stopping by. We are committed to providing the best answers for all your questions. See you again soon. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.