A Perfectly Competitive Firm That Is Producing a Positive Quantity

question 90

Multiple Choice

A perfectly competitive firm that is producing a positive quantity of a good maximises its economic profit if it produces so that

• A) marginal revenue = marginal cost.
• B) total revenue = total cost.
• C) average revenue = average total cost.
• D) average total cost = average variable cost.

---

Definitions:

House

Often referring to the House of Representatives, it is one of the two chambers of the United States Congress, the other being the Senate; members are elected to represent districts within states.

Senate

One of the two houses of the legislature in many countries, often tasked with reviewing and consenting to legislation, appointments, and treaties.

Property Ownership

The legal right or title to possess, use, and dispose of buildings, land, or other tangible objects.

Voting Qualifications

The criteria that determine eligibility to vote in elections, typically including age, citizenship, and residence requirements.