Suppose that when a firm with a downward-sloping demand curve produces and sells 1,000 units of output, its marginal cost and marginal revenue are equal at $6.00, its average variable cost is $8.00, and its average total cost is $10.00. This firm would:
A) maximize profit by producing.
B) minimize its loss by producing.
C) minimize its loss by shutting down.
D) not enough information to answer the question.

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The Answer of Suppose that when a firm with a downward-sloping demand curve produces and sells 1,000 units of output, its marginal cost and marginal revenue are equal at $6.00, its average variable cost is $8.00, and its average total cost is $10.00. This firm would:
A) maximize profit by producing.
B) minimize its loss by producing.
C) minimize its loss by shutting down.
D) not enough information to answer the question.

Suppose That When a Firm with a Downward-Sloping Demand Curve