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Question
In a perfectly competitive market in which all firms are maximizing their economic profits, the demand and supply curves intersect at a price of $8. From this we know that each
A) firmʹs average total cost of producing the good is $8.
B) firmʹs average variable cost of producing the good is $8.
C) firmʹs marginal cost of producing the good is $8.
D) firm is earning positive economic profits at a price of $8 or more.
Answer
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