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Question
If a firm is producing an output rate at which marginal cost is greater than price, the firm
A) is sustaining economic loss.
B) should increase its output level.
C) should reduce its output level.
D) will not be covering its fixed cost.
Answer
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Related questions
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Which of the following statements is FALSE?
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Assume that coffee and tea are substitutes. Given a downward sloping demand curve for tea, an increase in the price of tea will causeA) an increase in the demand for coffee. B) a decrease in the demand for coffee.C) a leftward shift of the demand curve for tea. D) a leftward shift in the demand for coffee.
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