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Assume for a Competitive Firm That MC = AVC at $22

Question 301

Multiple Choice

Assume for a competitive firm that MC = AVC at $22, MC = ATC at $30, and MC = MR at $35. This firm will


A) realize a profit of $13 per unit of output.
B) minimize its losses by producing in the short run.
C) maximize its profit by producing in the short run.
D) shut down in the short run.

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