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    Competitive market and profit maximizing decisions

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    Competitive industry, market determined price =$12, Output = 50 units, ATC = $10, Marginal cost = $15, AVC = $7

    Is this firm making the right profit maximizing decision? If yes, why and if not, what should this firm do?

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    Solution Preview

    Based on the data given, the firm is not making profit maximizing decision as the Marginal Cost ...

    Solution Summary

    Discusses a profit maximizing decision.