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Suppose that a perfectly competitive firm selling gasoline is currently producing 5000 gallons of gasoline. If the firm's total cost of production is $20,000 and
Suppose that a perfectly competitive firm selling gasoline is currently producing 5000 gallons of gasoline. If the firm's total cost of production is $20,000 and the total variable cost is $16,000, then if the equilibrium price of gasoline is $3.75 then the firm's profits will be [ Select ] , and if the equilibrium price of gasoline is $3.00 then the firm's profits would be [ Select ] . (Remember firms can choose to shut down.)
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