If a firm's demand curve is perfectly elastic, then at the profit-maximizing level of output
A. P > 0 and MR = 0.
B. P < MR < MC.
C. P > MR > MC.
D. P = MR = MC.
Answer: D
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Funding a Missile Program Merowak Missiles is proposing to develop its next generation Democratizer Offensive Weapon System II (DOWS II) for the US military. It expects to have to sink $1 billion into R&D and design, spend $0.5 billion building the
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