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When Perfect Competition Prevails, Which of the Following Characteristics of Firms

Question 253

Multiple Choice

When perfect competition prevails, which of the following characteristics of firms are we likely to observe?


A) None of them ever has diminishing marginal returns.
B) They all try to operate where price equals average variable cost.
C) They all try to operate where price equals total cost.
D) They are all price takers.

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