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If in the Short Run,at the Profit Maximizing Level of Output,the

Question 27

Multiple Choice

If in the short run,at the profit maximizing level of output,the average revenue curve of a competitive firm lies above the average cost curve:


A) the firm is incurring losses.
B) the firm is just able to cover its total cost.
C) the firm enjoys above-normal profits.
D) the firm must shut down.
E) the firm is barely able to cover its variable costs.

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