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Question
Refer to the accompanying table. A firm participating in a competitive market with these costs would be making a profit if the price is
| Price | Average Fixed Cost | Average Variable Cost |
| $2 | $5 | $6 |
| $4 | $3 | $4 |
| $6 | $1 | $5 |
| $8 | $0.50 | $7 |
a. $6.
b. $8.
c. $4.
d. $2.
e. either $6 or $8.
Answer
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