Question: 2. (25 points) Using an appropriate diagram, explain why a profit maximizing firm will continue to produce in the short- run even though it is

2. (25 points) Using an appropriate diagram, explain why a profit

2. (25 points) Using an appropriate diagram, explain why a profit maximizing firm will continue to produce in the short- run even though it is losing money. Be sure to indicate the profit maximizing level of output, the level of prots (losses) and explain why it would continue to produce while it is losing money

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