A Profit-Maximizing Firm in a Competitive Market Is Currently Producing

question 448

Multiple Choice

A profit-maximizing firm in a competitive market is currently producing 200 units of output. It has average revenue of $9 and average total cost of $7. It follows that the firm's

• A)average total cost curve intersects the marginal cost curve at an output level of less than 200 units.
• B)average variable cost curve intersects the marginal cost curve at an output level of less than 200 units.
• C)profit is $400.
• D)All of the above are correct.

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Definitions:

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A term referring to the United States' business sector, particularly large multinational companies and the economic and political influence they wield.

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An exhibition held in Moscow in 1959, as part of cultural exchanges during the Cold War, showcasing American technology, lifestyle, and art to the Soviet public.

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The action of using up goods and services by households or individuals, an essential concept in economics that relates to demand and spending habits.