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Question
If price is $5, marginal cost is $5, average total cost is $3, and the quantity produced is 150 units, then the perfectly competitive firm is
A) not maximizing economic profit.
B) earning $2 in economic profits and is maximizing economic profits.
C) earning $150 in economic profits and is not maximizing economic profits.
D) earning $300 in economic profits and is maximizing economic profits.
Answer
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