As Long as It Does Not Shut Down, a Perfectly

question 44

Multiple Choice

As long as it does not shut down, a perfectly competitive firm earns the maximum profit as long as it operates so that

• A) its price exceeds its marginal revenue.
• B) its marginal revenue equals its marginal cost.
• C) its price exceeds its average total cost.
• D) market demand is inelastic.

---

Definitions:

Exchange Rates

The value of one currency expressed in terms of another currency.

Transaction

An instance of buying or selling something; a business deal or action.

Currency Exchange

The process of exchanging one country's currency for another country's currency, typically at a rate determined by the foreign exchange market.

Exchange Rate

The amount of one currency required to purchase one unit of another currency.