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Consider a competitive firm that is choosing an output level to maximize its profits in the...

Consider a competitive firm that is choosing an output level to maximize its profits in the short run. Which of the following statements is not necessarily true and why? (Assume that marginal cost is not constant and is well defined at all levels of output.)

a. The marginal cost curve is rising.

b. Price equals marginal cost.

c. Price is at least as large as average variable cost.

d. Total revenues are at least as large as total costs.

e. Marginal cost is at least as large as average variable cost.

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