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QUESTION 22
Consider a firm operating in a competitive market. The firm is producing 50 units of output, has an average total cost of production equal to 7 dirhams, and is earning 350 dirhams economic profit in the short run. What is the current market price?
a. 11 dirhams.
b. 14 dirhams.
c. 12 dirhams
. d. 10 dirhams.
QUESTION 25 When salaries decrease, what does happen in the market?
a. Total surplus decreases.
b. Consumer surplus decreases.
c. Producer surplus decreases.
d. All of the above decrease.