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To Maximize Profits in the Short Run,a Perfectly Competitive Firm

Question 24

Multiple Choice

To maximize profits in the short run,a perfectly competitive firm will produce that output at which:


A) marginal revenue equals demand.
B) price equals marginal revenue.
C) price equals marginal cost.
D) marginal revenue equals average total cost.
E) total revenue equals total cost.

Correct Answer:

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