Which of the Following Statements Is True for Both a Competitive

question 45

Multiple Choice

Which of the following statements is true for both a competitive market and a single-price monopoly?

• A) The firm maximizes profit by producing the quantity at which marginal revenue equals marginal cost.
• B) The firm can make an economic profit in the long run.
• C) The price is set where the supply curve and demand curve intersect.
• D) The firm always produces at the lowest possible long-run average cost.

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