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Question
Marcy owns a photography business in Mobile, Alabama. The market for photography is very competitive. At Marcys current production level, her marginal cost is $15 and her marginal revenue is $12. In order to maximize profits, Marcy should
a. decrease production.
b. keep production the same.
c. increase the price.
d. decrease the price.
e. increase production.
Answer
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Related questions
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Suppose Solomon lives in a community with no price controls. What do you expect will happen if his town borders a community where there is a binding price ceiling on most products?
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