In the short run, a perfectly competitive firm: (1) produces where the difference between the market price and marginal cost is largest, and (2) temporarily when profits are negative. O A. (1) is false and (2) is true O B. (1) is true and (2) is false O C. (1) is false and (2) is false O D. (1) and (2) are true

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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In the short run, a perfectly competitive firm: (1) produces where the difference between the market price and marginal cost is largest, and (2) temporarily shuts down
when profits are negative.
O A. (1) is false and (2) is true
O B. (1) is true and (2) is false
O C. (1) is false and (2) is false
O D. (1) and (2) are true
Transcribed Image Text:In the short run, a perfectly competitive firm: (1) produces where the difference between the market price and marginal cost is largest, and (2) temporarily shuts down when profits are negative. O A. (1) is false and (2) is true O B. (1) is true and (2) is false O C. (1) is false and (2) is false O D. (1) and (2) are true
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