Which of the Following Is True

question 255

Multiple Choice

Which of the following is true?

• A) Price and average revenue are never equal.
• B) Price and marginal revenue are seldom equal under conditions of perfect competition.
• C) When a firm is operating under perfectly competitive market conditions, price and marginal cost will always be equal if the firm is maximizing profits.
• D) Average revenue equals price times quantity.

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Definitions:

Underground Economy

Economic activities that occur outside of the official market and are not recorded in the gross national product or gross domestic product.

Illegal Immigrants

Individuals who enter or reside in a country without proper authorization or in violation of immigration laws.

Entrepreneurs

Individuals who organize, manage, and assume the risks of a business or enterprise, often innovating and creating new products or services.

GDP Deflator

An economic metric that converts output measured at current prices into constant-dollar GDP by accounting for inflation.