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If a Firm Is a Perfect Competitor, Then

Question 92

Multiple Choice

If a firm is a perfect competitor, then


A) the demand curve for its product is perfectly elastic.
B) it can independently set the price of the product it sells without regard to what other firms in the market are doing.
C) it is impossible for the firm to earn short-run economic profits.
D) its marginal cost will exceed marginal revenue at the optimal level of output.

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