A firm facing a downward sloping demand curve is producing, Ask an Expert

Economics

A firm facing a downward sloping demand curve is producing a level of output at which price is $7, marginal revenue is $5, and average total cost, which is at its minimum value, is $3. In order to maximize profit, the firm should

a. decrease price.

b. keep price the same.

c. increase price.

d. decrease output.

e. both c and d.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91224741

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