1. A consultant has advised Consolidated Fish, Inc. that it should cut back its
ID: 1241136 • Letter: 1
Question
1. A consultant has advised Consolidated Fish, Inc. that it should cut back its production in order to increase its profits. We can conclude from this that..2. To maximize profits, a firm should produce at an output up to the point where..3. Statement I. Marginal revenue is the additional revenue from selling one more unit of output.Statement II. A firm will always produce at an output at which marginal revenue is greater than marginal cost, except when it is minimizing its losses...
4. Which statement is true?
A. The minimum point on the firm's marginal cost curve is the shutdown point.
B. The minimum point on the firm's marginal cost curve is the break-even point.
C. The minimum point on the firm's average variable cost curve is the shutdown point.
D. The minimum point on the firm's average total cost curve is the shutdown point.
Explanation / Answer
A. The minimum point on the firm's marginal cost curve is the shutdown point.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.