Which of the Following Expressions Is Correct for a Competitive

question 154

Multiple Choice

Which of the following expressions is correct for a competitive firm?

• A)profit = (quantity of output) x (price - average total cost)
• B)marginal revenue = (change in total revenue)/(quantity of output)
• C)average total cost = total variable cost/quantity of output
• D)average revenue = (marginal revenue) x (quantity of output)

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Definitions:

Target Price

A pre-set price determined by a company or government at which a product, especially in agriculture, is aimed to be sold in the market.

Countercyclical Payment

A fiscal mechanism used to reduce the economic fluctuations by providing economic support during downturns and less support during growth periods.

Price Supports

Government interventions to maintain the market price of a commodity or product at a certain level by buying excess supply or instituting price floors.

Government

The organization or system through which a community, state, or nation is governed, often involving regulations and public services.