If a perfectly competitive firm is producing an output level that sets its marginal revenue equal to its short- run marginal cost (MR = MC) and its long- run marginal cost (MR = LMC) , the firm______ .
A) is maximizing its long- run profit, but not its short- run profit
B) is maximizing its short- run and long- run profit
C) is maximizing its short- run profit, but not its long- run profit
D) should increase production to maximize its short- run and long- run profit
Correct Answer:
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