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If a Perfectly Competitive Firm Charges the Market Price of $14

Question 78

Multiple Choice

If a perfectly competitive firm charges the market price of $14 per unit,


A) its marginal revenue is $14, and its average revenue is less than $14 per unit
B) it will sell no output
C) its average revenue is $14, and its marginal revenue is less than $14 per unit
D) its average revenue is $14, and its marginal revenue is $14
E) its average and marginal revenue are $14 only for the first unit sold

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