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Suppose product price is fixed at $24; MR = MC at Q = 200; AFC =$6; AVC = $16. What do you advise this firm

Suppose product price is fixed at $24; MR = MC at Q = 200; AFC =$6; AVC = $16. What do you advise this firm to do?

a.

Decrease output.

b.

Stay at the current output; the firm is losing $200.

c.

Increase output.

d.

Stay at the current output; the firm is earning a profit of$400.

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