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MC Qu. 10-169 (Algo) Assume for a competitive firm... Assume for a competitive firm that MC = AVC at $8, MC = ATC at $12,

MC Qu. 10-169 (Algo) Assume for a competitive firm...

Assume for a competitive firm that MC = AVC at $8, MC = ATC at $12, and MC = MR at $7. This firm will

Multiple Choice

  • maximize its profit by producing in the short run.
  • shut down in the short run.
  • realize a loss of $5 per unit of output.
  • minimize its losses by producing in the short run.

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