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Suppose a Perfectly Competitive Firm Can Increase Its Profits by Reducing

Question 66

Multiple Choice

Suppose a perfectly competitive firm can increase its profits by reducing its output. Then it must be the case that the firm's:


A) marginal revenue equals its marginal cost.
B) price exceeds its marginal cost.
C) price exceeds its marginal revenue.
D) marginal cost exceeds its marginal revenue.

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