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If SnuggleTight, a Pillow-Making Firm in Long Island, NY, Incurs

Question 94

Multiple Choice

If SnuggleTight, a pillow-making firm in Long Island, NY, incurs losses by producing where its MR = MC, then at least in the short run, it should


A) shut down
B) increase output
C) decrease output
D) remain at that output level only if P > AVC
E) remain at that output level only if P > ATC

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