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Question: A firm is currently producing 30 units of output. At this level of output produced: Its average total cost is 110 (ATC =110) The market price per unit of output is 125
MR= 30
MC = 50
A) Is this firm making profits or losses? How much?
B) Are they maximum profits? Why?
C) If your answer to part ii was no, what does this firm have to do to maximize its profits?
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