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The Market Price Has Fallen Below a Firm's Average Total

Question 89

Multiple Choice

The market price has fallen below a firm's average total costs, but is above the firm's average variable cost curve. In the short run, the firm:


A) has greater marginal costs than marginal revenue.
B) can minimize its losses by continuing to produce.
C) is earning positive profits.
D) is covering all of its fixed costs, but not all of its variable costs.

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