If the Profit-Maximizing Quantity of Production for a Competitive Firm

question 42

Multiple Choice

If the profit-maximizing quantity of production for a competitive firm occurs at a point where the firm's average total cost of production is falling as production increases, then the firm

• A)will be earning positive economic profit at the profit-maximizing quantity.
• B)will have economic profit less than zero at the profit-maximizing quantity.
• C)will have zero economic profit at the profit-maximizing quantity.
• D)should increase the quantity of production to increase profit.

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Definitions:

Proximal Convoluted Tubule

The portion of the nephron in the kidney which is involved in the reabsorption of water, ions, and all organic nutrients.

Cotransported

Refers to the simultaneous transport of two substances across a cell membrane by a single carrier protein, often using the gradient of one solute to drive the transport of the other.

Glomerular Filtration Rate

A measurement of how much blood is filtered by the glomeruli of the kidney each minute, indicating kidney function.

Renal Fraction

Portion of the cardiac output that flows through the kidneys; averages 21%.