Suppose That, in the Short Run, a Perfectly Competitive Firm $\times$

question 14

Multiple Choice

Suppose that, in the short run, a perfectly competitive firm earns a normal profit. Which of the following is incorrect?

• A) MR = price
• B) MR = ATC
• C) AR \(\times\) Q = TR
• D) TR = TC
• E) P = AVC

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Definitions:

Jeremy Bentham

A British philosopher, jurist, and social reformer in the 18th century, known as the founder of modern utilitarianism.

Marginal Utility

The further happiness or usefulness a person gets from consuming an additional unit of a product or service.

Total Utility

The total satisfaction received from consuming a particular quantity of goods or services.

Star Wars

A popular science fiction franchise created by George Lucas, comprised of movies, books, comics, and more.