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If the Market Price of a Perfectly Competitive Firm's Product

Question 164

Multiple Choice

If the market price of a perfectly competitive firm's product is below its average variable cost, then the firm's


A) marginal revenue is zero.
B) total revenue is as large as possible.
C) total revenue if it stayed open would be less than its total variable costs.
D) total revenue if it stayed open is less than its total cost but greater than its total fixed costs.

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