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You are a manager for monopolistically competitive firm. From experience, the profits maximizing level of output of your firm is 100 units. However, it is expected that prices of other close substitutes will fall in the near future. How should you adjust your level of production in response to this change?
a. produce more than 100 units
b. process less than 100 units
c. produce 100 units
d. insufficient information to decide
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