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The perfectly competitive firm, whose marginal revenue and marginal cost curves are shown, should produce A . 9 units, since that is where its profits
The perfectly competitive firm, whose marginal revenue and marginal cost curves are shown, should produce
A units, since that is where its profits will be maximized.
B units, since that is where MC and MC is decreasing.
C units, since that is where
D units, since that is where MC MR and MC is increasing.
E either or units, since MC MR at both levels of production.
F at the minimum point of the MC curve.
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