ECON 103 – Suppose you are a consultant for a firm

ECON 103 – Suppose you are a consultant for a firm

Subject: Economics    / General Economics
Question
Microsoft Word – MIDTERM EXAMINATION #2 103_(SPRING 2017)

Suppose you are a consultant for a firm that is perfectly competitive. The firm is worried only about its policies in the short run. What would you recommend in terms of quantity changes (raise, cut, shut down or stay put) and price changes (raise, cut, stay put) in each of the following situations: a.
[5 points] P = $11 MC = $12 AVC = $7. b.
[5 points] P = $9 MC = $4 AVC = $11.

Possibly need to graph

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