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If a Profit-Maximizing, Competitive Firm Is Producing at a Loss

Question 13

Multiple Choice

If a profit-maximizing, competitive firm is producing at a loss in the short run, then

A) P < AVC.
B) P < MC.
C) P = AVC + AFC.
D) average revenue is less than price.
E) P < ATC, but P > AVC.

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