When a perfectly competitive firm produces the profit-maximizing output and it is at its shutdown point, the firm's ________.
A) marginal revenue equals its average fixed cost
B) total revenue equals its total variable cost
C) marginal cost is less than its average variable cost
D) total revenue is less than its total variable cost
Question 2
The prisoners' dilemma has an equilibrium in which
A) both players deny.
B) both players confess.
C) the player who confesses wins.
D) the player who denies wins.
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Competitive firms and maximization