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In Perfectly Competitive Markets, If the Price Is _______

Question 175

Multiple Choice

In perfectly competitive markets, if the price is _______ , the firm will _______ .


A) greater than ATC; make an economic profit
B) less than the minimum AVC; shut down
C) greater than the minimum AVC but less than ATC; continue to produce and incur a loss.
D) all of the above are true.

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