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Question
Suppose that in a perfectly competitive market, the market price is $10. A firm in that market has marginal cost of $10, average total cost of $12, and it is producing 100 units. The firm is
A) earning $1,000 in total economic profits and is maximizing economic profits.
B) earning $200 in total economic profits and is maximizing economic profits.
C) earning zero total economic profits and is not maximizing economic profits.
D) incurring $200 in total economic losses and is minimizing economic losses.
Answer
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Related questions
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