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Flora's Flowers Operates in a Perfectly Competitive Market

Question 93

Multiple Choice

Flora's Flowers operates in a perfectly competitive market.At the point where marginal cost equals marginal revenue,ATC = $10,AVC = $5,and the price per unit is $15.In this situation,


A) Flora earns positive profits in the short run
B) Flora will shut down in the short run
C) Flora's supply curve will shift to the left
D) Flora's supply curve will shift to the right
E) the market price will rise in the long run

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