If Production Is Occurring Where Marginal Cost Exceeds Price, the Purely

question 177

Multiple Choice

If production is occurring where marginal cost exceeds price, the purely competitive firm will

• A)maximize profit, but resources will be underallocated to the product.
• B)maximize profit, but resources will be overallocated to the product.
• C)fail to maximize profit and resources will be overallocated to the product.
• D)fail to maximize profit and resources will be underallocated to the product.

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