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Sally Eagle & Daughter is a producer of apples in Washington State. It is only one of thousands of apple sellers and hence, produces only

Sally Eagle & Daughter is a producer of apples in Washington State. It is only one of thousands of apple sellers and hence, produces only a small fraction of the total output of apples produced each year. Apple growers sell an identical product and new producers are free to enter the market. Hence, Sally Eagle & Daughter is a perfectly competitive firm. As an economic adviser to Sally Eagle & Daughter, explain to the firm how it should determine how much to produce.

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