Under Perfect Competition, Any Profit-Maximizing Producer Faces a Market Price

question 35

Multiple Choice

Under perfect competition, any profit-maximizing producer faces a market price equal to its

• A) average costs
• B) marginal costs
• C) total costs
• D) variable costs

---

Definitions:

Liability

The condition of having legal accountability, especially regarding debts or legal duties.

Limited Partnership

A type of partnership composed of one or more general partners who manage the business and are personally liable, and one or more limited partners who contribute capital and have limited liability.

Capital Contribution

The act of providing capital, either in the form of money or other assets, to a company or partnership by its owners or partners.

General Partner

An owner of a partnership who has unlimited liability and is typically involved in the day-to-day management of the business.