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Assume That the Equilibrium Price in a Perfectly Competitive Industry

Question 65

Multiple Choice

Assume that the equilibrium price in a perfectly competitive industry is $4.25.If a firm in this industry produced and sold 10 units with an average total cost of $5.00, what would be the result would be:


A) a profit of $0.75
B) a profit of $7.50
C) a loss of $0.75
D) a loss of $7.50
E) a loss of $75.00

Correct Answer:

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