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If the Demand Curve Faced by a Firm Is Downward

Question 28

Multiple Choice

If the demand curve faced by a firm is downward sloping and the market price of the product is above marginal cost of production,which of the following is correct?


A) Not enough of the economy's resources are being allocated to producing the good
B) Too much of the economy's resources are being allocated to producing the good
C) The firm is in a competitive market
D) The firm is making profits
E) The firm is losing money

Correct Answer:

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