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Exhibit 22-2 Refer to Exhibit 22-2. for the Firm That Faces the Firm

Question 52

Multiple Choice

Exhibit 22-2
Exhibit 22-2 Refer to Exhibit 22-2. For the firm that faces the demand curve in the exhibit, A) marginal revenue is increasing. B) price equals marginal revenue. C) if the firm maximizes profits, it produces the quantity of output at which average total cost equals marginal cost. D) marginal revenue equals marginal cost at all levels of output.
Refer to Exhibit 22-2. For the firm that faces the demand curve in the exhibit,

A) marginal revenue is increasing.
B) price equals marginal revenue.
C) if the firm maximizes profits, it produces the quantity of output at which average total cost equals marginal cost.
D) marginal revenue equals marginal cost at all levels of output.

Correct Answer: