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A competitive firm receives price p for each unit of output, and pays price w for each unit of its only variable input. It also incurs set-up costs of F. Its output from L units of variable input is f (L) = VL. It's possible that the maximum profit a firm can earn from production is negative (i.e. lose money). In this case the firm is better off not producing. When is this the case? OF P O The firm can never make positive profit Subm