In different competitive market

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In a different competitive market, the market-determined price is $80. For a firm currently producing 1,000 units of output, short-run marginal cost is $100, average total cost is $100, and average variable cost is $75. Is this firm making the profit-maximizing decision? Why or why not? If not, what should the firm do? Will this increase or decrease the firm’s profit margin (i.e. the firm’s profit per unit)?

Reference no: EM131167311

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