The Economic Profit of a Perfectly Competitive Firm

question 87

Multiple Choice

The economic profit of a perfectly competitive firm

• A) is less than its total revenue.
• B) equals its total revenue.
• C) is greater than its total revenue.
• D) is less than its total revenue if its supply curve is inelastic and is greater than its total revenue if its supply curve is elastic.

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Definitions:

Knowledge

Information, understanding, or skill that one gets from experience or education.

Beliefs

Mental representations or attitudes towards certain propositions or states of the world, often based on personal judgment, faith, or understanding.

Expectations

Beliefs or forecasts about future events, based on past experiences, current information, or cultural norms.

Wolfgang Kohler

A German psychologist and one of the founders of Gestalt psychology, known for his work on insight learning.