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d. Suppose the competitive industry price is P* = $8, and at the current prot-maximizing quantity a rm's average variable cost (AVC) is $5 and

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d. Suppose the competitive industry price is P* = $8, and at the current prot-maximizing quantity a rm's average variable cost (AVC) is $5 and average total cost (ATC) is $12. The best decision for this rm is to stop production immediately. (4 marks)

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