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puala is a potato farmer and the world potato market is perfectly competitive. The market price is $25 a basket. Paula sells 800 baskets a

puala is a potato farmer and the world potato market is perfectly competitive. The market price is $25 a basket. Paula sells 800 baskets a week and her marginal cost is $27 a basket. The market price falls to $22 a basket, and Paula cuts her output to 500 baskets a week. Paula's average variable cost and marginal cost fall to $22 a basket. Is Paula maximizing profit

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