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Suppose that in a perfectly competitive industry, the market price of the product is $6. A firm is producing the output level at which average
Suppose that in a perfectly competitive industry, the market price of the product is $6. A firm is producing the output level at which average total cost equals marginal cost, both of which are $8. Average variable cost is $4. To maximize its profits in the short run, the firm should
A) expand its output.
B) there is not enough information. to know.
C) shut down.
D) leave its output unchanged.
E)reduce its output.
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