A Perfectly Competitive Firm Will Maximize Its Profit at the Level

question 239

Multiple Choice

A perfectly competitive firm will maximize its profit at the level of output where the vertical distance between its total revenue curve and total cost curve is the largest.This is the same level of output where

• A)average total cost equals marginal revenue.
• B)marginal revenue equals marginal profit.
• C)marginal revenue equals marginal cost.
• D)marginal revenue equals average revenue.

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Definitions:

Unchanging Stimulus

A stimulus that remains constant over time, not varying in intensity, duration, or quality, which can lead to habituation or sensory adaptation in organisms.

Sensory Responsiveness

Describes an individual's tendency to react to and process sensory information in a particular way, which can vary widely among different people.

Difference Threshold

The minimum change in stimulation required to detect a difference between two stimuli, also known as the just noticeable difference (JND).

Heavier Objects

Objects with greater mass or weight compared to other items in their comparison set.