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    Principles of Microeconomics Study Set 10
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    Exam 14: Firms in Competitive Markets
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    If a Profit-Maximizing Firm in a Competitive Market Discovers That
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If a Profit-Maximizing Firm in a Competitive Market Discovers That

Question 243

Question 243

Multiple Choice

If a profit-maximizing firm in a competitive market discovers that, at its current level of production, price is greater than marginal cost, it should


A) shut down.
B) reduce its output but continue operating.
C) continue to produce at the current levels.
D) increase its output.

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