When price is greater than both marginal cost and average variable cost, the perfectly competitive firm
A) is maximizing economic profit.
B) should increase its level of output.
C) should reduce its level of output.
D) should stop production.
Answer: B
Economics
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If an Industry consists of two large firms, it is known as a(n)
a. monopoly b. perfect competition c. monopolistic competition d. natural monopoly e. duopoly
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