Question: The figure below shows the demand, average total, and marginal cost curve for Pepe's Pet Salon which produces pet haircuts in a perfectly competitive market:

The figure below shows the demand, average total, and marginal cost curve for Pepe's Pet Salon which produces pet haircuts in a perfectly competitive market: Suppose that the firm's manager decides to produce 15 units of output. He asks your opinion of this decision. What would you tell him?

MC orice p*-MR 20 15 13 15 20 25 output

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