To Maximize Profits, a Perfectly Competitive Firm and a Monopoly

question 136

Multiple Choice

To maximize profits, a perfectly competitive firm and a monopoly will set ______equal to______ .

• A)marginal revenue; marginal cost
• B)marginal cost; average total cost
• C)marginal revenue; average total cost
• D)marginal cost; average variable cost

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Definitions:

Competitive Advantage

The attribute that allows an organization to outperform its rivals in the market, leading to greater sales or margins and/or retaining more customers.

Strategic Intent

The focus on and application of organizational energies on a unifying and compelling goal.

Unifying Target

A common goal set for a group or team to focus their efforts towards achieving together.

Stakeholders

The persons, groups, and other organizations that are directly affected by the behaviour of the organization and that hold a stake in its performance.