In competitive industry the market-determined price

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In a competitive industry the market-determined price is $12. A firm is currently producing 50 units of output, average total cost is $10, marginal cost is $15, and average variable cost is $7. In order to maximize profit, the firm should

a. produce more because the firm is earning a profit of $100

b. keep output the same because the firm is earning a profit of $100

c. produce more because the next unit of output increases profit by $2

d. produce less because the last unit of output decreased profit by $3

Reference no: EM131236689

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