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    Economics Today Study Set 1
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    Exam 23: Perfect Competition
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    When Price Is Greater Than Both Marginal Cost and Average
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When Price Is Greater Than Both Marginal Cost and Average

Question 347

Question 347

Multiple Choice

When price is greater than both marginal cost and average variable cost, the perfectly competitive firm


A) is maximizing economic profit.
B) should increase its level of output.
C) should reduce its level of output.
D) should stop production.

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