Which of the Following Is True of a Profit-Maximizing Competitive

question 1

Multiple Choice

Which of the following is true of a profit-maximizing competitive firm in the short run?

• A) The firm produces at the point where price is equal to marginal cost.
• B) The firm produces at the point where average cost is at its minimum point.
• C) The demand curve faced by each firm in the industry is downward sloping.
• D) The firm always makes a zero economic profit.
• E) The firm suffers a deadweight loss.

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Definitions:

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