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Assume a cell phone accessory company operates in a perfectly competitive market producing 5,000 phone cases per day. At this output level, price exceeds this

Assume a cell phone accessory company operates in a perfectly competitive market producing 5,000 phone cases per day. At this output level, price exceeds this firms marginal cost. To maximize profits, the firm should

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stop producing since it is earning a loss.

increase their output.

make no adjustments as they are already maximizing their profits.

decrease their output.

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