Consider a Perfectly Competitive Firm in the Short Run

question 230

Essay

Consider a perfectly competitive firm in the short run.Assume the firm produces the profit- maximizing output and that it earns economic profits.At the profit-maximizing output, all of the following are correct except:
A.price is equal to marginal cost.
B.price is equal to marginal revenue.
C.price is equal to average total cost.
D.marginal cost is greater than average total cost.

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Division Of Labor

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