At Its Current Level of Quantity, a Perfectly Competitive Firm's

question 70

Multiple Choice

At its current level of quantity, a perfectly competitive firm's marginal revenue is $3.25, its short- run marginal cost is $3.25 and its long- run marginal cost is $3.25. Which of the following statements is true?

• A)The firm is maximizing both its short- run and long- run profit.
• B)The firm is maximizing its long- run profit, but not its short- run profit.
• C)The firm is not maximizing its short- run or long- run profit.
• D)The firm is maximizing its short- run profit, but not its long- run profit.

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Definitions:

Heart Defects

Structural abnormalities of the heart present at birth that can affect its ability to pump blood effectively, ranging from simple to complex forms.

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A condition in newborns resulting from exposure to toxic substances before birth or immediately after, leading to various health complications.

Opium

A narcotic drug obtained from the poppy plant, used historically for pain relief and commonly associated with addiction.

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The state of carrying a developing fetus within the female body, typically lasting about 40 weeks from the last menstrual period to childbirth.