3. Determine whether the following statements are true or false. Explain your answers. a. A firm will
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3. Determine whether the following statements are true or false. Explain your answers.
a. A firm will make a profit when the price it charges exceeds the average variable cost of the chosen output level.
b. To maximize profits in the short run, a firm must minimize its costs.
c. If economic profit is positive, firms will exit the market in the short run.
d. A firm that receives a price greater than its average variable cost but less than its average total cost should shut down.
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