1. For a competitive industry in the long run, if MR = MC = SRATCmin = LRATCmin, then all of the following are true except:
A) the industry has achieved allocative efficiency.
B) consumer surplus is maximized.
C) firms are earning an economic profit.
D) the industry has achieved productive efficiency.
2. Sally sells soybeans in a competitive market. If her MC = $3, her MR = $4, her ATC = $5, and her AVC = $2, then she should:
A) decrease production.
B) shut down.
C) increase her price.
D) increase production.
These multiple choice questions belong to Economics and the questions are about marginal revenue being equal to marginal cost.
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