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A Perfectly Competitive Firm Produces 50 Units of Output at Equilibrium

Question 34

Multiple Choice

A perfectly competitive firm produces 50 units of output at equilibrium in the short run.The total cost borne by the firm is $300 and the average revenue is $2.Therefore:


A) is just breaking even.
B) is earning positive profits.
C) is facing a positively sloped demand curve.
D) is suffering losses.
E) is experiencing diseconomies of scale.

Correct Answer:

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