If a perfectly competitive firm in the short run is producing where P = ATC = MC, this firm is
A) incurring losses.
B) earning economic profits.
C) obliged to shut down.
D) on the downward-sloping portion of its demand curve.
E) at its profit-maximizing output level.
Ans: E) at its profit-maximizing output level.
Economics
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What will be an ideal response?
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