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    Microeconomics Study Set 2
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    Exam 12: Firms in Perfectly Competitive Markets
  5. Question
    If, for a Given Output Level, a Perfectly Competitive Firm's
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If, for a Given Output Level, a Perfectly Competitive Firm's

Question 212

Question 212

Multiple Choice

If, for a given output level, a perfectly competitive firm's price is less than its average variable cost, then the firm


A) is earning a profit.
B) should shut down.
C) should increase output.
D) should increase price.

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