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AP® Microeconomics

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Moderate

Perfect Competition: Short-Run Characteristics

APMICR-39ROBG

Which of the following is always true of a profit-maximizing perfectly competitive firm in the short-run?

I. Earns normal profit
II. Allocatively efficient
III. Productively efficient
IV. Price is equal to marginal revenue

A

IV only

B

II and IV

C

I, II and III

D

II, III, and IV

E

I, II, III and IV