At the Profit-Maximizing Level of Output for a Perfectly Competitive

question 234

Multiple Choice

At the profit-maximizing level of output for a perfectly competitive firm, price equals marginal cost.Which of the following is also true?

• A)The difference between total revenue and total cost is the greatest.
• B)Total revenue equals total cost.
• C)Average revenue equals average total cost.
• D)Marginal profit equals marginal cost.

---

Definitions:

Porter's

Refers to theories and models developed by Michael E. Porter, including his Five Forces framework for industry analysis and competitive strategy.

Cola Drink

A carbonated soft drink flavored with cola nuts and other ingredients.

SWOT Analysis

A strategic planning technique used to help an individual or organization identify Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.

Strategic Management

A process that involves formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives.