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A firm operating in circumstances of perfect competition faces a market price of $10. It is producing 2,000 units of output daily at a total
A firm operating in circumstances of perfect competition faces a market price of $10. It is producing 2,000 units of output daily at a total cost of $19,000. This firm:
- should increase its output to improve its profit position
- should reduce its output to improve its profit position
- should shut down to minimize its loss
- may or may not be at the output level yielding maximum profit - the information furnished is not sufficient to cover this point
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