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If a perfectly competitive firm finds at the quantity where MR=MC that price is greater than AVC but less than ATC, the firm will be

If a perfectly competitive firm finds at the quantity where MR=MC that price is greater than AVC but less than ATC,

the firm will be earning positive economic profits.

the firm will immediately shut down.

the firm will produce in the short run, and new firms would tend to enter the industry over time.

the firm will produce in the short run, but may eventually go out of business over time.

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