Question: 1 7 . [ 3 Marks ] A perfectly competitive firm produces chicken soup from chicken and vegetables. Assume typical cost curves. The chicken soup
Marks A perfectly competitive firm produces chicken soup from chicken and vegetables. Assume typical cost curves. The chicken soup market is in long run and short run equilibrium. From this point, if the market price falls due to a change in demand, at the firms new profit maximizing quantity, relative to before, its average variable cost and average total cost A increases; increases. B increases; decreases. C decreases; increases. D decreases; decreases. E none of the above.
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