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A firm is producing where its marginal costs are at the lowest level. What can one most likely infer from this?
a. there is either lost opportunity for further profits by producing more, or the firm should shut-down if it is competitive and price is at that low level.
b. It is a price-taker who is producing too much.
c. It is a monopolist who is producing the socially optimal quantity.
d. The firm is producing rationally.
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