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In a competitive market, the market-determined price is $60. For a typical firm producing 100 units of output, short-run marginal cost is constant at $65, average total cost is $95, and average fixed cost is $30. Is this firm making the profit-maximizing decision? If not, what should it do?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M947973

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