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Assume the price of soybeans is $10 per bushel. To maximize profits, a competitive firm selling soybeans will: produce soybeans up to the point

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Assume the price of soybeans is $10 per bushel. To maximize profits, a competitive firm selling soybeans will: produce soybeans up to the point at which average variable cost equals $10/bu. adjust production until the marginal cost of soybeans equals $10/bu. produce all the soybeans he or she can. produce soybeans up to the point where average cost equals $10/bu.

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