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The Market Price of Plunckets Is $10, and the Market

Question 45

Multiple Choice

The market price of plunckets is $10, and the market for plunckets is perfectly competitive. If a firm in this market is choosing its optimal quantity of 98 plunckets, which of the following is NOT correct?


A) The marginal cost of the 98th unit is zero.
B) The marginal cost of the 97th unit is less than $10.
C) The marginal cost of the 99th unit is more than $10.
D) The marginal revenue of the 98th unit is $10.

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