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Assume That a Firm Has TC = 100 + Q2

Question 5

Multiple Choice

Assume that a firm has TC = 100 + q2.If price is $50, which statement is true?


A) The firm produces 50 units, and makes an economic profit; this outcome is not a long-run equilibrium
B) The firm produces 25 units, and makes an economic profit; this outcome is not a long-run equilibrium.
C) The firm produces 25 units, and makes zero economic profit; this outcome is not a long-run equilibrium.
D) The firm produces 25 units, and make zero economic profit; the market is in its long-run equilibrium.
E) None of the above.

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