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Moderate

Perfect Competition: Short-Run Profit-Maximization for Firm

APMICR-LIOBKT

A perfectly competitive firm is currently producing at a quantity where the average total cost is \$20, marginal cost is \$20, average variable cost is \$16 and the marginal revenue is \$18. In the short-run, this firm should

A

increase its price.

B

decrease its price.

C

increase its output.

D

decrease its output.

E

shut down.