A competitive firm operates in a market where the price is $10 per unit. The firm chooses to produce 100 units, the quantity where its marginal cost is also $10. At this output level, its average total cost is $12 and its average variable cost is $7. Based on this information, what is the firm's current situation?
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A competitive firm operates in a market where the price is $10 per unit. The firm chooses to produce 100 units, the quantity where its marginal cost is also $10. At this output level, its average total cost is $12 and its average variable cost is $7. Based on this information, what is the firm's current situation?
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