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1. For a perfectly competitive market, at the profit maximizing level of output
a. P = MR = MC
b. P > MR > MC
c. P < MR < MC
d. P > 0 and MR = 0
e. Input can be put to so many different uses.
2. Which of the following is the set of conditions necessary for long-run equilibrium for a perfectly competitive firm?
a. P = MR = MC and P < LAC
b. MR = P > MC and P = LAC
c. P = MR = MCand P > LAC
d. P = MR = MC and P = LAC
3. Draw the short-run equilibrium for a perfectly competitive firm that is making a loss and is below the shut down point. Clearly label all the curves.
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