Assume you know the following short run information for a perfectly competitive firm:
Based on the information above, which of the following is false?
A) The firm's average total cost of production increases for outputs in excess of 8 units.
B) The firm's average total cost of producing 7 units is the same as for producing 6 units.
C) The profit maximizing level of output for the firm would be 10 units.
D) In the long run, the firm's price would be less than $10.
Correct Answer:
Verified
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