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The perfectly competitive firm, whose total revenue ( TR ) and total cost ( TC ) curves are shown on the right, should produce A
The perfectly competitive firm, whose total revenue TR and total cost TC curves are
shown on the right, should produce
A units, since that is where its costs will be minimized.
B either or units, since MC MR at both levels of production.
C units, since that is where and is increasing.
D units, since that is where MC MR and MC is decreasing.
E units, since that is where
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