If a Profit-Maximizing Firm in a Perfectly Competitive Market Is

question 164

Multiple Choice

If a profit-maximizing firm in a perfectly competitive market is currently producing the output where (price - average variable cost) > average fixed cost, the firm is

• A) making a positive economic profit.
• B) making a zero economic profit.
• C) suffering an economic loss.
• D) none of the above.

---

Definitions:

Awareness Problematic

A situation in which there is a lack of recognition, consideration, or understanding of issues or difficulties, leading to potential complications.

Contemplation Stage

A stage in the Transtheoretical Model of change where an individual is aware of a problem and is seriously considering addressing it but has not yet made a commitment to take action.

Action Stage

In behavior change, the phase where an individual actively implements strategies to alter a behavior, typically following preparation and planning stages.

Preparation Stage

In behavior change models, the preparation stage is when individuals intend to take action in the immediate future, often by planning or strategizing.