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In a Competitive Industry, If the Marginal Cost of Factory

Question 47

Multiple Choice

In a competitive industry, if the marginal cost of Factory 1 is higher than that of Factory 2, in the short run:


A) both factories are producing too much.
B) either Factory 1 is producing too much or Factory 2 is producing too little or both.
C) either Factory 1 is producing too little or Factory 2 is producing too much or both.
D) both factories are producing too little.

Correct Answer:

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