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Which of the Following Statements Is True

Question 27

Multiple Choice

Which of the following statements is true?


A) Under a super profits tax regime firms continue to operate indefinitely.
B) Under a royalties regime firms continue to operate indefinitely.
C) Under a super profits tax regime firms continue to operate if the price is equal to minimum ATC.
D) Under a super profits tax regime firms exit the industry if the price is equal to minimum ATC.

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