Answered

Get expert advice and community support on IDNLearn.com. Join our knowledgeable community and access a wealth of reliable answers to your most pressing questions.

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:

Lanuelidn

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

We appreciate your participation in this forum. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. IDNLearn.com is committed to providing the best answers. Thank you for visiting, and see you next time for more solutions.