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short-run profit-maximizer or loss-minimizer

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14. Answer the question on the basis the numerical example below:
Quantity Price Marginal Revenue Average Fixed Cost Average Variable Cost Average Total Cost Marginal Cost
0 152
1 142 142 100.00 138.30 238.30 138.30
2 132 122 50.00 124.20 174.20 110.10
3 122 102 33.33 112.70 146.03 89.70
4 112 82 25.00 103.80 128.80 77.10
5 102 62 20.00 97.50 117.50 72.30
6 92 42 16.67 93.80 110.47 75.30
7 82 22 14.29 92.70 106.99 86.10
8 72 2 12.50 94.20 106.70 104.70
9 62 -18 11.11 98.30 109.41 131.10
10 52 -38 10.00 105.00 115.00 165.30
Assuming this firm is a short-run profit-maximizer or loss-minimizer. which statement best describes its present situation?
a) It should shut down immediately.
b) It is incurring a loss but should continue ...

Solution Summary

The short-run profit-maximizer or loss-minimizer is considered.

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