A Perfectly Competitive Firm Is Maximizing Profit If

question 42

Multiple Choice

A perfectly competitive firm is maximizing profit if

• A)marginal cost equals price and price is not below minimum average variable cost.
• B)marginal cost equals price and price is not below minimum average fixed cost.
• C)total revenue is at a maximum.
• D)average variable cost is at a minimum.
• E)average total cost is at a minimum.

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Definitions:

Qualifying

Identifying potential customers within the firm’s target market who have a desire for the product, the authority to purchase it, and the resources to pay for it.

Promotional Salesperson

An individual who focuses on creating immediate product interest, offering special deals or incentives as part of a short-term sales strategy.

Personal-Selling

A direct sales approach where salespeople interact face-to-face with potential buyers to promote and sell products or services.

Specialist

An individual or business highly skilled and knowledgeable in a specific area or field, offering expertise-based services or products.