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The Corinth Farm sells feed corn in a purely competitive (price-takers) market. The marginal cost of feed corn at the current output of 20,000 units
The Corinth Farm sells feed corn in a purely competitive (price-takers) market. The marginal cost of feed corn at the current output of 20,000 units is $4.00. The marginal cost rises with higher levels of output. The minimum possible average variable cost is $3.50. The market price of the product is $3.00. To maximize profits or minimize losses, the Corinth Farm should: Question 4Select one: a. Continue to produce 20,000 units b. Shut down c. Continue production, but produce less than 20,000 units d. Increase production to more than 20,000 units
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