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In a competitive industry the market - determined price is $12. A firm is currently producing 50 units of output; average total cost is $10, marginal cost is $15, and average variable cost is $7.
a. Is the firm maiking the profit-maximizing decision ? why or why not? If not, what should the firm do ?
b. consider another firm in a competitive industry that faces a market determined price of $25. the firm is producing 10,000 units of output, and average total cost, which at its minimum value, is $25. Answer part a for this firm
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