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Suppose a Perfectly Competitive Firm Faces the Following Cost and Revenue

Question 38

Multiple Choice

Suppose a perfectly competitive firm faces the following cost and revenue conditions: ATC = $25.50; AVC = $20.50; MC = $25.50; MR = $28.50. The firm should


A) decrease output.
B) increase output.
C) shut down.
D) continue to produce its current output.

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