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If a Perfectly Competitive Firm Finds That the Price Exceeds

Question 109

Multiple Choice

If a perfectly competitive firm finds that the price exceeds its ATC,then the firm


A) will raise its price to increase its economic profit.
B) will lower its price to increase its economic profit.
C) is making an economic profit.
D) is incurring an economic loss.
E) is making zero economic profit.

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