Which of the Following Is True of a Profit-Maximizing Competitive

question 19

Multiple Choice

Which of the following is true of a profit-maximizing competitive firm in the long run?

• A)The firm produces at the point where price is equal to marginal cost.
• B)The firm produces at the point where average cost equals marginal cost when average cost is at its minimum point.
• C)The demand curve faced by all firms in the industry is downward sloping.
• D)The firm makes positive economic profit in the long run.
• E)In the long run,there is a deadweight loss in a competitive market.

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Definitions:

Equation

A mathematical statement asserting the equality of two expressions, typically involving one or more variables.

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Equation

A mathematical proposition that claims equality between two expressions, generally involving variables.

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