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If the Price of a Product Consistently Exceeds Its Average

Question 27

Multiple Choice

If the price of a product consistently exceeds its average cost, one can definitely conclude that the firm:


A) is earning a normal rate of return.
B) is maximizing its long-run profit.
C) is producing at its most efficient level of output.
D) is earning a positive economic profit.
E) is producing at the minimum efficient scale.

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