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If a Purely Competitive Firm Is in Short-Run Equilibrium and Its

Question 93

Multiple Choice

If a purely competitive firm is in short-run equilibrium and its marginal cost exceeds its average total cost,we can conclude that:


A) this is a decreasing-cost industry.
B) this is an increasing-cost industry.
C) firms will exit the industry in the long run.
D) firms will enter the industry in the long run.

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