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Suppose a Firm Is Operating in a Competitive Market Where

Question 47

Multiple Choice

Suppose a firm is operating in a competitive market where the price of the good is $12.If, at the current level of output, the firm's average cost is $15, marginal cost is $17, and fixed costs are $10, then the firm will:


A) increase profit by increasing output
B) increase profit by decreasing output
C) maximise profit by keeping output constant
D) we cannot say without more information

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