A Perfectly Competitive Firm That Wants to Maximize Profits or Minimize

question 52

Multiple Choice

A perfectly competitive firm that wants to maximize profits or minimize losses will produce in the short run as long as

• A)customers are buying its product.
• B)price is above average variable cost.
• C)price is above marginal revenue.
• D)average variable cost is above price.
• E)average total cost is above price.

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Definitions:

Second Quartile

Also known as the median; it splits the data set into two halves, with 50% of the data below it and 50% above it.

Relative Standing

A measure or ranking of a value or observation within the context of a larger set of data or population.

Observation

An act of recording the occurrence or existence of a specific entity or phenomenon.

Box and Whisker Plot

A graphical representation of data that highlights the median, quartiles, and extremes of the dataset.