faithw6865 faithw6865

22-02-2024
Business

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Suppose a perfectly competitive firm is producing at a level of output where MR-$8.50; ATC-$6.00; AVC=$4.00: MC=$7.50. In order to maximize profit, the firm should
A) increase both output and price
B) increase price but not output
C) increase output but not price
D) shut down

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