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Suppose a perfectly competitive firm is producing 37 units output, and the marginal cost of the 37th unit is $3. If the firm can sell each unit of output for $5 and the firm's revenue is sufficient to cover its variable cost, the firm should:.
A. lower its price.
B. decrease production.
C. increase production.
D. raise its price.
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Answers: 2
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Suppose a perfectly competitive firm is producing 37 units output, and the marginal cost of the 37th...
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