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Suppose a Perfectly Competitive Paper Firm Can Produce Six Tons

Question 21

Multiple Choice

Suppose a perfectly competitive paper firm can produce six tons of paper at an output level where marginal revenue is equal to marginal cost.The price per ton of paper is $100 and the average total cost is $75.What is the total profit or loss that the paper firm is earning?


A) $150.00
B) $450.00
C) $600.00
D) -$150.00
E) -$450.00

Correct Answer:

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