A Perfectly Competitive Firm Is Definitely Making an Economic Profit

question 479

Multiple Choice

A perfectly competitive firm is definitely making an economic profit when

• A) MR = MC.
• B) P = ATC.
• C) P < ATC.
• D) P > ATC.

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Definitions:

Possession

In law, it refers to the actual holding or control of property, whether owned or not.

Perfect

To complete or make flawless, often used in legal terms to describe the act of finalizing a security interest in accordance with the law.

Security Interest

A legal claim or lien on collateral that gives a lender the right to repossession if the borrower defaults on obligations.

Default

Failing to fulfill a legal obligation or agreement, particularly the failure to repay a loan as agreed with a lender.