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A Profit-Maximizing Firm in a Perfectly Competitive Market Is Currently

Question 51

Multiple Choice

A profit-maximizing firm in a perfectly competitive market is currently producing 1,000 units. The marginal cost of the 1,000th unit is $4, and the average total cost of producing 1,000 units is $1 per unit. Which of the following statements is NOT true?


A) The firm earns a profit of $3,000.
B) The market price is $4.
C) The marginal cost of 1,001 units is more than $4.
D) The firm's profit per unit is $4.

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