When a Profit-Maximizing Firm's Fixed Costs Are Considered Sunk in the Short

question 379

Multiple Choice

When a profit-maximizing firm's fixed costs are considered sunk in the short run, then the firm

• A)can set price above marginal cost.
• B)must set price below average total cost.
• C)will never show losses.
• D)can safely ignore fixed costs when deciding how much output to produce.

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