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If MC's Hammers, a Perfectly Competitive Firm, Finds That Its

Question 127

Multiple Choice

If MC's Hammers, a perfectly competitive firm, finds that its total revenue is $45, 000, its fixed cost is $20, 000, and its total cost is $50, 000, its producer surplus is


A) zero because TC > TR
B) -$5, 000
C) $25, 000
D) $15, 000
E) -$25, 000

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