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? The market for tomatoes is perfectly competitive. The equilibrium price in the market is $4.60/kg. When Tom the tomato farmer produces 10,000kg he has

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The market for tomatoes is perfectly competitive. The equilibrium price in the market is $4.60/kg. When Tom the tomato farmer produces 10,000kg he has an average total cost of $5/kg, a marginal cost of $4.20/kg, and an average variable cost of $4.20/kg. In the short run Tom should: Select one: a. raise the price of tomatoes, because he is losing money. O b. shut down, because he is losing money. O c. produce more tomatoes, because that will increase his profit. O d. keep output the same, because he is producing at minimum average variable cost

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