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Suppose that a perfectly competitive firm is currently producing output where the marginal cost of production is $5. If the current per unit price of

Suppose that a perfectly competitive firm is currently producing output where the marginal cost of production is $5. If the current per unit price of the product is $3, then in the short-run, this firm should

a. shutdown, since it is currently incurring economic losses.

b. exit the industry, since it is currently incurring economic losses.

c. increase production in order to increase profit.

d. decrease production in order to increase profit.

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