In the long run, a profit- maximizing firm will choose to exit a market when A. Fixed cost exceeds sunk costB. Average fixed cost is raisingC. revenue from Production is less than total costD. Marginal cost exceeds marginal revenue at the current level of production​

Answers 2

Answer:

Explanation:D is ccoreect marginal cost exceed

Answer:

Option D. Marginal cost exceeds marginal revenue at the current level of production​ is the correct answer.

Explanation:

Over time, when a company can recover both fixed and variable costs, it will opt out if the price is less than the total cost. In a market with free entry and exit, profits are driven to zero over time and all firms are producing at an effective rate.

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