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A firm is producing 50 units of output and receiving $1.50 for each unit. At this output, marginal revenue is $l.25, average cost per unit is $l.20, and marginal cost is $l.40. From these revenue and cost data, we can infer that the firm
a.    is maximizing its profit at this output
b.    should produce fewer than 50 units
c.    is encountering scale economies
d.    is producing too little

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