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In a competitive industry, the market-determined price is $12. For a firm currently producing 50 units of output, short-run marginal cost is $15, average total

In a competitive industry, the market-determined price is $12. For a firm currently producing 50 units of output, short-run marginal cost is $15, average total cost is $14, and average variable cost is $7. a. Is this firm making the profit-maximizing decision? Why or why not? If not, what should the firm do? Should the firm shut down? Explain.

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