• 2022-06-08
    When a manufacturer maximizes profits in a competitive market, the market price must be equal to the average cost.
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      A perfectly competitive firm maximizes its profit by producing the output at which its marginal cost equals its ____ A: marginal revenue B: average total cost C: average variable cost. D: average fixed cost.

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      When an individual firm in a competitive market increases its production, it is likely that the market price will fall.

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      A competitive firm maximizes profit by choosing the quantity at which ( ) A: average total cost is at its minimum. B: marginal cost equals the price. C: average total cost equals the price. D: marginal cost equals average total cost.

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      For any given price, a firm in a competitive market will maximize<br/>profit by selecting the level of output at which price intersects the<br/>( ) A: average total cost curve. B: average variable cost curve. C: marginal cost curve. D: marginal revenue curve.

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      If, in long run equilibrium, the competitive price of some good is $16.67, then, for each and every firm in the industry, A: marginal cost &gt; average cost = $16.67. B: marginal cost &lt; average cost = $16.67. C: $16.67 = marginal cost = average cost. D: $16.67 = marginal cost &gt; average cost.