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The Following Figure Shows the Marginal Cost Curves of Two

Question 65

Multiple Choice

The following figure shows the marginal cost curves of two profit-maximizing firms-Firm A and Firm B-in a perfectly competitive market.
The following figure shows the marginal cost curves of two profit-maximizing firms-Firm A and Firm B-in a perfectly competitive market.    -Refer to the figure above.Which of the following statements is true? A)  Firm B produces at a higher marginal cost than Firm A. B)  At a given market price, Firm A will enjoy a greater producer surplus. C)  Firm A will have a higher reservation value for the good than Firm B. D)  Firm B will produce a lower quantity than Firm A at all prices.
-Refer to the figure above.Which of the following statements is true?


A) Firm B produces at a higher marginal cost than Firm A.
B) At a given market price, Firm A will enjoy a greater producer surplus.
C) Firm A will have a higher reservation value for the good than Firm B.
D) Firm B will produce a lower quantity than Firm A at all prices.

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