If at Its Current Production Level, a Perfectly Competitive Firm's

question 64

Multiple Choice

If at its current production level, a perfectly competitive firm's marginal revenue and long- run marginal cost are equal to $5 and its long- run average cost is $4, which of the following statements is true?

• A)The firm should expect to earn positive economic profit indefinitely.
• B)The firm should expect the market supply curve to decrease.
• C)The firm should expect the market price of its product to increase.
• D)The firm should expect the market price of its product to fall.

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