Consider a Firm Operating in a Competitive Price-Taker Market

question 39

Multiple Choice

Consider a firm operating in a competitive price-taker market. The firm is producing 40 units of output, has an average cost of production equal to $5, and is earning $240 economic profit in the short run. What is the current market price?

• A) $9
• B) $10
• C) $11
• D) $12

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