A Perfectly Competitive Firm's Profit Per Unit of Output Equals

question 234

Multiple Choice

A perfectly competitive firm's profit per unit of output equals

• A)price minus average variable cost
• B)price minus marginal cost
• C)total revenue minus total cost
• D)price times quantity
• E)price minus average total cost

---

Definitions:

Annual Cash Inflow

The total amount of cash received by a company over a one-year period from its operational, investment, and financing activities.

Financially Attractive

A term used to describe investments, projects, or entities that present a favorable financial return or growth potential.

Discount Rate

The rate of interest deployed in DCF assessments to establish the present worth of forthcoming cash flows.

Pretax Return

The income a company generates before any taxes are subtracted.