In a short-term perfectly competitive market, profit-maximizing company A's marginal cost is 50, average variable cost is 45, and average total cost is 55 under the current production level. When the market price is 50, which of the following statements is correct? A. The company is experiencing losses. B. The company should shut down. C. Total variable cost can be covered by total revenue. D. Sunk cost is higher than total variable cost О А,С O A, B, C ○ A, C, D ○ B, D O B, C, D

In a short-term perfectly competitive market, profit-maximizing company A's marginal cost is 50, average variable cost is 45, and average total cost is 55 under the current production level. When the market price is 50, which of the following statements is correct? A. The company is experiencing losses. B. The company should shut down. C. Total variable cost can be covered by total revenue. D. Sunk cost is higher than total variable cost О А,С O A, B, C ○ A, C, D ○ B, D O B, C, D

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 7PA

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