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True or False, Justify the answer briefly. 1. If marginal cost is increasing, then the average cost must increase as well. 2. Firms should not
True or False, Justify the answer briefly.
1. If marginal cost is increasing, then the average cost must increase as well.
2. Firms should not consider sunk costs when maximizing profit.
3. In a competitive market, firms maximize their profit when price equals marginal cost, but not when marginal revenue equals marginal cost.
4. A firm should compete in a market even if they have a negative profit.
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