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A firm is currently producing 40 units of output. At this level of output produced:
- Its average total cost is 130 (ATC=130)
- The price per unit of output is 150
-MR=30
MC=50
i. Is this firm making profits or losses? How much?
ii. Are they maximum profits? Why?
iii. If your answer to part ii. was no, what does this firm have to do to maximize its profit?
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Explain in detail rather than general in your recommendation.
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