If a Profit-Maximizing Firm in a Perfectly Competitive Market Is

question 14

Multiple Choice

If a profit-maximizing firm in a perfectly competitive market is making an economic profit,then it must be producing a level of output where

• A)price is greater than marginal cost.
• B)price is greater than marginal revenue.
• C)marginal cost is greater than marginal revenue.
• D)marginal cost is greater than average total cost.
• E)average total cost is greater than marginal cost.

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Definitions:

Productivity Improvement

A process of increasing the efficiency and effectiveness of operations, usually by optimizing workflows, technology, and employee skills.

Commitment

A dedication or obligation that restricts freedom of action, often demonstrated through loyalty or an agreement to perform.

Unrealistic Optimism

The tendency to overestimate the likelihood of positive outcomes and underestimate the possibility of negative outcomes.

High Self-esteem

A positive assessment of one's own worth or value, characterized by confidence in one’s abilities and qualities.