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Assume the following scenario: the price of the product is $ 2 0 / unit . The marginal cost is also $ 2 0 .

Assume the following scenario:
the price of the product is $20/unit. The marginal cost is also $20. The average variable cost is $25, while the average total cost is $27. What would you recommend this perfectly competitive firm to do?
Question 7 options:
Shutdown its operations
Increase the level of output
Maintain the same level of output and cosider exiting in the long-run

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