When Solving Percentage Problems, the Portion

question 8

Multiple Choice

When solving percentage problems, the portion:

• A) is larger than the base when the rate is less than 100%
• B) can never be larger than the base
• C) can be larger than the base
• D) is smaller than the base when the rate is larger than 100%

---

Definitions:

Perfect Competition

A market structure characterized by a large number of small firms, homogeneous products, and free entry and exit, making firms price takers.

Average Total Cost

The total cost of production divided by the quantity produced, indicating the average cost of producing each unit of output.

Profit Maximization

The process by which a firm determines the price and output level that returns the greatest profit, considering costs and market demand.

Short-Run Supply Curve

A graphical representation showing the relationship between the market price of a good and the quantity supplied by producers in the short term.