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A firm sells a product in a purely competitive market. The marginal cost of the product at the current output of 100 units is $6.00.
A firm sells a product in a purely competitive market. The marginal cost of the product at the current output of 100 units is $6.00. The minimum possible average variable cost is $4.00. The market price of the product is $5.00. To maximize profit or minimize losses, the firm should:
A)Continue producing 100 units
B)Shutdown
C)Produce less than 100 units
D)Produce more than 100 units
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