(Answered) A perfectly competitive firm is producing at an output

Management Studies

A perfectly competitive firm is producing at an output level under the the market price = $125 per unit, while the ATC = $130, AVC = $120, and MC = $125 at that output level. The firm should

A. Stay open but decrease output.

B. Shut down because price is lower than AVC.

C. Staty oepn and maintain the current level of output.

D. Shut down because of negative economic profit.

E. Stay open and raise the price.

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Business Management, Management Studies

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