T-shirt enterprises is selling in a purely competitive


T-Shirt Enterprises is selling in a purely competitive market. It is producing 3,000 units, selling them for $2 each. At this level of output, the average total cost is $2.50 and the average variable cost is $2.20. Based on these data, the firm should: A - shut down in the short run. B - decrease output to 2,500 units. C - ontinue to produce 3,000 units. D - increase output to 3,500 units.

Solution Preview :

Prepared by a verified Expert
International Economics: T-shirt enterprises is selling in a purely competitive
Reference No:- TGS0655070

Now Priced at $10 (50% Discount)

Recommended (98%)

Rated (4.3/5)