Which of the Following Is TRUE

question 130

Multiple Choice

Which of the following is TRUE?

• A) If the price falls below the average total cost, the firm will earn economic profits.
• B) Price and marginal revenue are the same in perfect competition.
• C) Economic profit per unit is found by subtracting AVC from the price.
• D) Economic profit is always positive in the short run.

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Definitions:

Exports

The selling of goods and services produced in one country to another country.

Bretton Woods System

A monetary management system that established the rules for commercial and financial relations among major industrial states after World War II, introducing fixed exchange rates and laying the foundation for modern international monetary systems.

Trade Surplus

Occurs when the value of a country's exports exceeds the value of its imports.

U.S. Dollar

The official money of the United States, commonly utilized as a standard and reserve financial instrument globally.