Question content area Part 1 Suppose a perfecttly competitive
firm receives $45 for every unit they...
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Economics
Question content area Part 1 Suppose a perfecttly competitive
firm receives $45 for every unit they sell. They currently have an
average total cost equal to $50, and the marginal costs associated
with producing the next unit equals $40. This firm should: A.
increase output because price is above marginal cost. B. we need
more information to determine whether this firm should increase,
decrease, or keep output the same. C. decrease output because price
is below average total cost. D. decrease output because marginal
cost is below average total cost.
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