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You are the manager. The current price in a perfectly competitive market is $100. At the current output level, Q = 700, for a particular
You are the manager. The current price in a perfectly competitive market is $100. At the current output level, Q = 700, for a particular firm its average fixed cost is $20, Total cost is $66,500, and marginal cost is $110. Is it currently making a profit? Explain if and how this firm should change its level of production, Q, in order to maximize profit.
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