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Perfect Competition Profit on the Graph
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Problem 5
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Problem 10
Perfect Competition Profit on the Graph
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11. Perfect Competition / Perfect Competition Profit on the Graph / Problem 5
Problem 5
If a firm's marginal cost exceeds its marginal revenue at the current level of production, what should the firm do to optimize its production?
A
Shut down production immediately.
B
Increase production to spread fixed costs over more units.
C
Maintain current production to avoid losses.
D
Reduce production until marginal cost equals marginal revenue.
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