Selling tomatoes in purely competitive market

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Tomato Farms is selling tomatoes in a purely competitive market. Its output is 5000 bushels, which sell for $15 a bushel. At this level of output, the marginal cost is $15 a bushel and average total cost is $14.50 a bushel. Should the firm increase output, decrease output, or not produce? Why?

Reference no: EM131098881

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