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A graph has downward-sloping lines labeled D and MR. MR is to the left of D. A curve labeled MC slopes downward, then upward to
A graph has downward-sloping lines labeled D and MR. MR is to the left of D. A curve labeled MC slopes downward, then upward to the right. MC is at its minimum at Q1, P3. MC intersects MR at Q2, P3. MC intersects D at Q3, P2. A curve labeled ATC slopes downward, is tangent with D at Q2, P1, and intersects MC at a point beyond Q3, then slopes upward to the right. The monopolistically competitive firm above is currently producing at quantity Q3. Profit maximization dictates that it should _______ output and _______ price. decrease; decrease increase; increase increase; decrease decrease; increase not change; increase
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