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A firm is currently producing 100 units of output. At this level of ouput produced:
Its average total cost is 110 (ATC = 110)
The price per unit of output is 120
MR = 50
MC = 20
1. Is this firm making profits or losses? How much?
2. Are they máximum profits? Why?
3. If your answer to part ii. was no, what does this firm have to do to maximize its profits?
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