Suppose your firm is operating in a perfectly competitive market, and that the minimum average variable cost of producing your good is $30. If the price of the good is $32, your firm should
A) not produce anything since the price is above the minimum of average variable cost.
B) not consider price when determining the amount to sell.
C) supply the amount of the good where the marginal cost of production is equal to $32.
D) supply the amount of the good where the marginal cost of production is $30.
Correct Answer:
Verified
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