The Goal of a Perfectly Competitive Firm Is to Maximize

question 307

Multiple Choice

The goal of a perfectly competitive firm is to maximize its

• A) normal profit.
• B) revenue.
• C) output.
• D) economic profit.

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Definitions:

Short Run

A period in which at least one input is fixed while others may be varied to adjust output levels.

Long Run

The long run is a period in economics where all factors of production and costs are variable, allowing companies to adjust all inputs.

TVC

Total Variable Cost, which refers to the total of all costs that vary with the level of output in the production of goods or services.

Short Run

In economics, a period in which at least one factor of production is fixed and cannot be changed.