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Assume a certain firm in a competitive market is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals
Assume a certain firm in a competitive market is producingQ= 1,000 units of output. AtQ= 1,000, the firm's marginal cost equals $15 and its average total cost equals $11. The firm sells its output for $12 per unit.
To maximize its profit, the firm should
a) shut down
b)continue to produce 1,00 units
c)decrease its output, but continue to produce
d) increase its output
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