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Unformatted text preview: level. Explain briefly. [2 points] c) At a price of $200, how much would the firm produce? Verify that the two methods stated in part (b) give you the same answer. [2 points] 2) Why should a firm continue to produce when the market price is less than the firms average total cost but greater than its average variable cost. [2 points] 3) Explain why the long-run profit for firms in a purely competitive industry is zero. [2 points]...
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