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If a Competitive Price-Taker Firm Is Currently Producing a Level

Question 164

Multiple Choice

If a competitive price-taker firm is currently producing a level of output at which marginal cost exceeds marginal revenue, then


A) average revenue exceeds marginal cost.
B) the firm is earning a positive profit.
C) a one-unit decrease in output would increase the firm's profit.
D) All of the above are correct.

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