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A firm has hired you as a consultant. Their only concern is to maximize profits. This...

A firm has hired you as a consultant. Their only concern is to maximize profits. This firm is in a perfectly competitive industry--they have no control over price. They give you the following information: We're selling 25 units at a price of $15 and at the end of the day we're currently earning a profit of $50. It costs us about $20 to produce another unit. Based on your analysis, what would you advise them to do?

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Rahul Sunny answered 2 years ago
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