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Suppose the Marginal Revenue Curve for a Perfectly Competitive Firm

Question 117

Multiple Choice

Suppose the marginal revenue curve for a perfectly competitive firm intersects the average total cost curve at its minimum point. As the marginal revenue curve moves upward from that point along the marginal cost curve,


A) the profit-maximizing quantity decreases.
B) the profit-maximizing quantity increases.
C) the firm will choose not to produce to minimize its loss.
D) the average fixed cost curve will shift upward.

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