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If a Purely Competitive Firm Is Producing at the MR

Question 3

Multiple Choice

If a purely competitive firm is producing at the MR = MC output level and earning an economic profit, then


A) the selling price for this firm is above the market equilibrium price.
B) new firms will enter this market.
C) some existing firms in this market will leave.
D) there must be price fixing by the industry's firms.

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