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According to Standard Micro Theory, a Firm Produces Up to the Point

Question 2

Multiple Choice

According to standard micro theory, a firm produces up to the point where


A) price equals the markup over marginal cost.
B) marginal revenue equals marginal cost.
C) price is less than marginal cost by an amount equal to the return to capital.
D) price exceeds marginal cost by an amount equal to the return to capital.
E) none of the above.

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