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When a Firm Is a Price Searcher, Its Marginal Revenue

Question 190

Multiple Choice

When a firm is a price searcher, its marginal revenue is


A) equal to price because the firm's demand curve is perfectly elastic.
B) equal to price if, and only if, the firm is maximizing profits.
C) less than price when the firm is maximizing profits.
D) equal to average total cost at the long-run equilibrium output rate.

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