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In the Short Term,a Firm in a Very Competitive Market

Question 62

Multiple Choice

In the short term,a firm in a very competitive market


A) can never earn positive economic profits.
B) sets its price where marginal cost equals average total cost.
C) must set its price at the competitive equilibrium price even if it is below their minimum average cost.
D) maximizes its profits when it experiences economies of scale.

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