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nurse15 nurse15
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A year ago

Consider the total cost and revenue curves shown below, for two perfectly competitive firms, Firm A and Firm B.

Short description: Two graphs labeled firm A and firm B. Long description: In each graph, the horizontal axis represents the quantity and the vertical axis represents dollars. The first graph representing firm A shows two increasing S-shaped parallel curves representing TC and TVC and an increasing line representing TR. TVC and TR begin at the origin. TC begins at a point, a little above the origin on the vertical axis. The second graph representing firm B shows two increasing S-shaped parallel curves representing TC and TVC and an increasing line representing TR. TVC and TR begin at the origin. TC begins at a point, a little above the origin on the vertical axis. TR intersects TC and TVC at two points, each.

FIGURE 9-5

Refer to Figure 9-5. Given its total cost and revenue curves, Firm B should



▸ maximize its profits by producing that level of output such that the slope of the TC curve is equal to the slope of the TR curve.

▸ maximize its profits by producing that level of output such that the slope of the TVC curve is equal to the slope of the TR curve.

▸ produce the level of output where the TC curve intersects the TR curve.

▸ exit the industry.

▸ shut down temporarily.
Textbook 
Microeconomics

Microeconomics


Edition: 17th
Author:
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nemisisnemisis
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A year ago
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nurse15 Author
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A year ago
this is exactly what I needed
kevin12323h
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This site is awesome
DragonHeart
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2 hours ago
Thanks
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