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Suppose that a perfectly competitive firm faces a market price of $12 perunit, and at this price theupward-sloping portion of thefirm's marginal cost curve crosses
Suppose that a perfectly competitive firm faces a market price of $12 perunit, and at this price theupward-sloping portion of thefirm's marginal cost curve crosses its marginal revenue curve at an output level of 1,800 units. If the firm produces 1,800 units, its average variable costs equal $7.00 perunit, and its average fixed costs equal $1.00 per unit.
What is thefirm's profit-maximizing(or loss-minimizing) outputlevel?
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