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

Question 379

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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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