Which of the Following Is True for a Profit-Maximizing Firm

question 34

Multiple Choice

Which of the following is true for a profit-maximizing firm operating in a competitive market,monopolistic competition,and monopoly?

• A) Firms earn positive economic profits in the long run.
• B) Firms earn zero economic profits in the long run.
• C) Profits are maximized when marginal cost equals marginal revenue.
• D) Price equals marginal revenue.
• E) Entry into the industry is impossible.

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Definitions:

Direct Marketing

A strategy that involves direct communication with potential customers through various channels, aiming to generate a specific response or transaction.

Database Management

The process of storing, organizing, and managing data using database management systems (DBMS) to ensure data accessibility, accuracy, and security.

Promotion

The act of communicating the value of a product or service to potential customers, using various techniques to encourage sales.

Expensive

Refers to something that has a high price or cost, often relative to similar products or services.