Suppose your firm has a u-shaped average variable cost curve and operates in a perfectly competitive market. if you produce where the product price (marginal revenue) equals average variable cost (on the upward-sloping portion of the avc curve), then your output willa. exceed the profit-maximizing level of output. b. generate zero economic profits. c. equal the profit-maximizing level of output. d. be smaller than the profit-maximizing level of output.
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