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A Firm's Profit Equals

Question 29

Multiple Choice

A firm's profit equals:


A) P − MC [price minus marginal cost].
B) (P − ATC) × Q [(price minus average total cost) times the quantity sold].
C) P × Q [price times the quantity sold].
D) (P − ATC) ÷ Q [(price minus average total cost) divided by the quantity sold].

Correct Answer:

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