Question

10 points eBookPrintReferences Check my work Check My Work button is now disabledItem 9Item 9 10 points A perfectly competitive firm that makes car batteries has a fixed cost of $10,000 per month. The market price at which it can sell its output is $100 per battery. The firm’s minimum AVC is $105 per battery. The firm is currently producing 500 batteries a month (the output level at which MR = MC). This firm is making a _____________ and should _______________ production.

Answer 1

loss, shut down

Step-by-step explanation:

This firm is making a loss and should shut down production.