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Assume That for an Individual Firm MC = AVC at $6

Question 74

Multiple Choice

Assume that for an individual firm MC = AVC at $6 and MC = ATC = $10 and MC = price = $12,then the firm will be operating:


A) at a loss.
B) where economic profits are negative.
C) at a point where firms will leave the market.
D) where economic profits are positive.

Correct Answer:

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