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If a Perfectly Competitive Firm Is Faced with Average Revenue

Question 23

Multiple Choice

If a perfectly competitive firm is faced with average revenue below average variable cost it will produce zero output so as to reduce its


A) costs to below its revenue.
B) costs to zero.
C) losses to the amount of its fixed costs.
D) losses to the amount of its variable costs.
E) losses to the amount of its marginal costs.

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