When a Firm Maximises Its Profit, Which of the Following

question 44

Multiple Choice

When a firm maximises its profit, which of the following is correct for firms in monopolistic competition and perfect competition?

• A) P = ATC always for firms in both perfect competition and monopolistic competition.
• B) P = MC for both types of firms.
• C) P = MR = MC for firms in perfect competition, and P > MR = MC for firms in monopolistic competition.
• D) P > MR = MC for firms in both perfect competition and monopolistic competition.
• E) MR = MC for firms in perfect competition and MR > MC for firms in monopolistic competition.

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Definitions:

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A theory in sociology that emphasizes the role of symbols and language as core elements of all human interaction.

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