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How Can a Perfectly Competitive Firm That Makes (Along with Its

Question 132

Multiple Choice

How can a perfectly competitive firm that makes (along with its competitors) zero economic profit create positive economic profit in the short run? It can


A) raise the price of its good
B) develop a new cost-saving technology
C) advertise to promote its own brand
D) set up barriers to entry
E) lower the price to increase the quantity it can sell

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