c. Monopolistic competition. O d. Oligopoly. Clear my choice 3 A perfect competitive firm sells its product at $23, its ATC is $25 and its AVC is $20, Then: ed out of Select one: O a. It is making an economic profit n O b. It should reduce production Oc. It should shut down immediately. Od. It should stay in business in the short run on 4 Which of the following is not a possible reason for a firm to have economies of scale. t red d out of 9 on a. Ability to charge as much as it wants b. Can raise funds in capital mkt at lower costs c. Specialization of resources O d. Can spread out promotional costs