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If price is greater than the average variable cost and less than the average total cost at the profit-maximizing quantity of output in the short run, a perfectly competitive firm will: produce more than the profit-maximizing quantity. produce at an economic loss. shut down production. produce at an economic profit.

If price is greater than the average variable cost and less than the average total cost at the profit-maximizing quantity of output in the short run, a perfectly competitive firm will: produce more than the profit-maximizing quantity. produce at an economic loss. shut down production. produce at an economic profit.

Survey Of Economics
Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter7: Perefect Competition
Section: Chapter Questions
Problem 5SQP
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If price is greater than the average variable cost and less than the average total cost at the profit-maximizing quantity of output in the short run, a perfectly competitive firm will: produce more than the profit-maximizing quantity. produce at an economic loss. shut down production. produce at an economic profit.
Transcribed Image Text:If price is greater than the average variable cost and less than the average total cost at the profit-maximizing quantity of output in the short run, a perfectly competitive firm will: produce more than the profit-maximizing quantity. produce at an economic loss. shut down production. produce at an economic profit.
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