Economics 9708 · AS & A Level · 7.6

7.6 — practice question

A firm in monopolistic competition is making maximum profit and producing at the lowest point on its average total cost curve. Which statement could not be correct?

  • AMarginal cost equals average cost.
  • BMarginal cost equals marginal revenue.
  • CThe firm is making normal profit.
  • DThe firm is making supernormal profits.

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