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2. (a) In a perfectly competitive market, a firms' marginal revenue is always equal to what? A profit maximizing firm will operate at what level
2. (a) In a perfectly competitive market, a firms' marginal revenue is always equal to what? A profit maximizing firm will operate at what level of output? Explain with relevant diagrams. (b) If average variable cost exceeds the market price, what level of output should the firm produce? What if there were no fixed costs? Explain with relevant diagrams
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