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Suppose That the Marginal Cost of Producing Cottonseed Meal Is

Question 112

Multiple Choice

Suppose that the marginal cost of producing cottonseed meal is $170 per ton. If the cottonseed oil industry is perfectly competitive and in long-run equilibrium, the average total cost of producing cottonseed oil:


A) is less than $170 per ton.
B) is equal to $170 per ton.
C) is greater than $170 per ton.
D) cannot be determined.

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