b. Consider a perfectly competitive firm in the following position: output 4000 units, market $1, total fixed costs $2000, total variable costs $4500, and marginal cost = $1. To %3D price maximize profits the firm should increase or reduce its output? Explain.

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b. Consider a perfectly competitive firm in the following position: output = 4000 units, market
price = $1, total fixed costs = $2000, total variable costs
maximize profits the firm should increase or reduce its output? Explain.
$4500, and marginal cost =
$1. To
Transcribed Image Text:b. Consider a perfectly competitive firm in the following position: output = 4000 units, market price = $1, total fixed costs = $2000, total variable costs maximize profits the firm should increase or reduce its output? Explain. $4500, and marginal cost = $1. To
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