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Suppose a Perfectly Competitive Firm Can Increase Its Profits by Increasing

Question 67

Multiple Choice

Suppose a perfectly competitive firm can increase its profits by increasing its output.Then it must be true that the firm's _____ exceeds its _____.


A) marginal revenue;marginal cost
B) price;average total cost but is less than marginal cost
C) marginal cost;marginal revenue
D) price;marginal revenue

Correct Answer:

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