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If a Perfectly Competitive Firm Charges a Price That Is

Question 63

Multiple Choice

If a perfectly competitive firm charges a price that is equal to its average total cost


A) the firm is earning an economic profit equal to zero.
B) the firm is earning an economic profit greater than zero.
C) the firm is earning an economic profit less than zero.
D) It is not possible to determine anything about the firm's profits.

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