If a Firm's Demand Curve Is Perfectly Elastic, Then at the Profit-Maximizing

question 124

Multiple Choice

If a firm's demand curve is perfectly elastic, then at the profit-maximizing level of output

• A) P = MR = MC.
• B) P > MR > MC.
• C) P < MR < MC.
• D) P > 0 and MR = 0.

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Definitions:

Motor Starter

An electrical device that controls the use of electrical power to equipment, usually an electric motor, by initiating the stop/start command.

Magnetic Contractor

A specialized type of relay used in high power applications to switch on and off electric currents.

Electronic Motor Overload Units

Devices that protect motors from drawing too much current, potentially causing overheating or failure.

Eutectic Alloy

A mixture of two or more metals that solidifies at a single temperature, the lowest at which the mixture can remain fully solid, forming a homogeneous crystal structure.