A Perfectly Competitive Firm Will Always Maximize Its Profit or Minimize

question 52

Multiple Choice

A perfectly competitive firm will always maximize its profit or minimize its loss by:

• A)setting marginal cost equal to marginal revenue in order to determine the optimal quantity of output.
• B)setting marginal cost above average cost.
• C)setting total cost minus total revenue at its maximum level.
• D)creating a unique product.