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When the Market Price Has Fallen Below a Firm's ATC

Question 92

Multiple Choice

When the market price has fallen below a firm's ATC but is above its AVC,in the short run,the firm:


A) then MC must be greater than MR.
B) can minimize its losses by staying open.
C) is earning positive profits.
D) then a firm is covering all of its fixed costs, but not all of its variable costs.

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