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The Marginal Cost Curve Is a Price Taker's Supply Curve

Question 87

Multiple Choice

The marginal cost curve is a price taker's supply curve because it shows


A) an inverse relationship between price and output.
B) the amount of profit at each level of output.
C) the extra profit at each level of output.
D) a negative relationship between price and output.
E) that a profit-maximizing firm will produce more as price rises.

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