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    5. For any given price, a firm in a competitive market will maximize profit by selecting the level of o

    Question

    For any given price, a firm in a competitive market will

    maximize profit by selecting the level of output at which price intersects the
    A average total cost curve Correct Answer Incorrect Answer
    B average variable cost curve Correct Answer Incorrect Answer
    C marginal cost curve Correct Answer Incorrect Answer
    D marginal revenue curve Correct Answer Incorrect Answer

    Solution

    Profit maximizing condition is Price = MC = MR for a firm in a competitive market.

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