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AP® Microeconomics

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Moderate

Perfect Competition: Profit-Maximization

APMICR-LHYHCD

A perfectly competitive firm sells its product for $\$10$, and at its current output, average variable cost is $\$7$, average total cost is $\$12$ and marginal cost is $\$10$. In the short run, this firm should

A

decrease its price.

B

increase its price.

C

increase production.

D

decrease production.

E

leave its output unchanged.