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(Solved): Your friend Njeri owns a doughnut shop in town, which is a competitive market in your community. Nje ...



Your friend Njeri owns a doughnut shop in town, which is a competitive market in your community. Njeri knows you're taking an economics course, so Njeri asks you what quantity of doughnuts to produce in order to maximize profit. Which is the best response to Njeri's question? Choose one: A. Produce the quantity that minimizes the average total cost of production. B. Produce the maximum quantity the size of the doughnut shop will allow. C. Produce the quantity where the marginal cost of producing the last unit equals the marginal revenue of producing that unit. D. Produce where the marginal revenue is equal to the market price for each doughnut sold.



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