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When a Perfectly Competitive Firm Produces the Profit-Maximizing Output and It

Question 167

Multiple Choice

When a perfectly competitive firm produces the profit-maximizing output and it is at its shutdown point, the firm's


A) marginal revenue equals its average fixed cost.
B) total revenue equals its total variable cost.
C) marginal cost is less than its average variable cost.
D) total revenue is less than its total variable cost.

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