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USPshnik [31]
4 years ago
8

If production is occurring where marginal cost exceeds price, the purely competitive firm will __________.

Business
1 answer:
devlian [24]4 years ago
8 0

Answer:

C. fail to maximize profit and resources will be overallocated to the product

Explanation:

At MC < P, the firm may earn profit but that is not maximum the maximu profit condition is that MR = MC and in perfect competition MR = P so MC = P is the maximum condition.

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