In a Perfectly Competitive Market,a Firm Maximizes Its Profit by Producing

question 13

Multiple Choice

In a perfectly competitive market,a firm maximizes its profit by producing the quantity of output at which

• A)market price equals average fixed cost.
• B)market price equals marginal cost.
• C)average variable cost equals average fixed cost.
• D)market price equals minimum average variable cost.
• E)market price equals marginal revenue.

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Definitions:

Absolute Threshold

The minimum intensity of a stimulus that one can detect 50% of the time.

Psychophysical Threshold

The minimum level of stimulus intensity needed for detection by sensory systems.

Subliminal Stimuli

Stimuli that are below the threshold of conscious perception, often used in reference to messages that are not consciously detected but can impact behavior.

Selective Perceptions

The cognitive process by which individuals focus attention on particular elements of their environment while ignoring others.