If a Purely Competitive Firm Is Producing at the P

question 20

Multiple Choice

If a purely competitive firm is producing at the P = MC output and realizing an economic profit, at that output

• A) marginal revenue is less than price.
• B) marginal revenue exceeds ATC.
• C) ATC is being minimized.
• D) total revenue equals total cost.

---

Definitions:

Authority

Authority refers to the legal power or right given to an individual or body to make decisions, enforce rules, or control something or someone.

Employer's Organization

A group that represents the interests of employers in various industries.

Ratify

To officially approve or confirm, often used in the context of validating agreements or contracts.

Actual Authority

The power that an agent or representative has been formally given by a principal to conduct specific acts.