Evaluate the following statements. If a statement is true, explain why. If it is false, identify the mistake and correct the error. Assume the market is perfectly competitive.   A profit-maximizing firm should select the output level at which the difference between the market price and marginal cost is greatest.                 An increase in fixed cost lowers the profit-maximizing quantity of output produced in the short run.

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A: Answer to the question is as follows:

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Q: Which of the following are characteristics of a perfectly competitive market? Check all that apply.…

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