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Suppose That a Price Taker Confronts a Price of $6

Question 89

Multiple Choice

Suppose that a price taker confronts a price of $6 and produces 650 units.For this to be the point of profit maximization,


A) total cost must exceed total revenue.
B) the marginal cost of producing the 650th unit must be $6.
C) total revenue must exceed total cost.
D) the marginal cost of producing the 650th unit must be less than $6.
E) total revenue must equal total cost.

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