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  3. Study Set
    Principles of Microeconomics
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    Exam 11: Price and Output in Monopoly, Monopolistic Competition, and Perfect Competition
  5. Question
    If a Firm Is Earning a Normal Profit, but Zero
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If a Firm Is Earning a Normal Profit, but Zero

Question 50

Question 50

Multiple Choice

If a firm is earning a normal profit, but zero economic profit, at the point where MR = MC, the firm should


A) shut down
B) increase output and decrease price
C) increase output and increase price
D) decrease output and increase price
E) remain at its current level of output

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