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If a perfectly competitive firm can sell a bushel of soybeans for $25 and it has an average variable cost of $26 per bushel and the marginal cost is $26 per bushel, the firm should:
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If a perfectly competitive firm can sell a bushel of soybeans for $25 and it has an average variable cost of $26 per bushel and the marginal cost is $26 per bushel, the firm should:

User Tabria
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Answer:

Step-by-step explanation:

The firm Should decrease the output.

Because as we see selling price P is LESS than Marginal Cost (MC) and in perfect competition P=MC for efficient allocation . So By decreasing output firm can decrease MC ⇒ which leads to output where P=MC.

User Suhan
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