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Assume a perfectly competitive firm is currently producing 100 units of output. Its marginal cost is $6 and rising at the output quantity. Its average
Assume a perfectly competitive firm is currently producing 100 units of output. Its marginal cost is $6 and rising at the output quantity. Its average variable cost is $7 and its average fixed cost is $3. If the product's price is $6, which of the following will the firm do in the short run to maximize its profit?
Answer Options:
a. Produce more than 100 units of output
b. Increase its price above $6
c. Shut Down
d. Continue to produce at exactly 100 units of output
e. Produce, but less than 100 units of output
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