When a Profit-Maximizing Competitive Firm Finds Itself Minimizing Losses Because

question 473

Multiple Choice

When a profit-maximizing competitive firm finds itself minimizing losses because it is unable to earn a positive profit, this task is accomplished by producing the quantity at which price is equal to

• A)sunk cost.
• B)average fixed cost.
• C)average variable cost.
• D)marginal cost.

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Definitions:

Genuine Assent

The agreement to enter into a contract based on a clear understanding of its terms, without any duress, fraud, or undue influence.

Undue Influence

An improper or wrongful pressure exerted on a person, resulting in the person acting against their free will or in a manner not reflective of their intent.

Misrepresentation

A false statement of fact made by one party to another, which has the effect of inducing that party into a contract.

Rejection

The refusal to accept an offer or proposal, in the context of contracts, it is the refusal to agree to the terms.