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Should the firm keep producing in the short

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Reference no: EM133339865

  1. Assume the market for a good is perfectly competitive and the market equilibrium price is $5.00. The profit maximizing output is 200. At this output level, the AVC = $3.00 and ATC = $6.00. 
  2. Should the firm keep producing in the short run?
  3. Explain.

Reference no: EM133339865

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