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22. A firm sets its price at $10.00 per unit. It has an average variable cost of $8.00 and an average fixed cost of $4.00
22. A firm sets its price at $10.00 per unit. It has an average variable cost of $8.00 and
an average fixed cost of $4.00 per
unit. In the long run, this firm is
a.earning zero profit and hence shut down b.unable to cover fixed cost and shut down c. incurring profit d. incurring loss per unit of $ 2.00 n should shut down
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