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If a Price Taker Produces an Output Level Where Price

Question 56

Multiple Choice

If a price taker produces an output level where price is greater than marginal cost,then the firm should


A) pay more to its variable factors of production.
B) pay more to its fixed factors of production.
C) decrease output to earn a higher profit or a smaller loss.
D) increase output to earn a higher profit or a smaller loss.
E) leave its output decision unchanged.

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