When a Perfectly Competitive Firm Is at Its Profit- Maximizing

question 4

Multiple Choice

When a perfectly competitive firm is at its profit- maximizing level of output, it

• A) is producing where MC = AC.
• B) is producing where P = AVC.
• C) may be making a profit or incurring a loss.
• D) is doing as well as it can and is making a profit.
• E) is producing where price exceeds marginal cost.