Profit-Maximizing Firms Enter a Competitive Market When, for Existing Firms

question 45

Multiple Choice

Profit-maximizing firms enter a competitive market when, for existing firms in that market,

• A) total revenue exceeds fixed costs.
• B) total revenue exceeds total variable costs.
• C) average total cost exceeds average revenue.
• D) price exceeds average total cost.

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Definitions:

Title

A legal term referring to the legal right of ownership of property or asset.

Gem Vehicles

Electric vehicles produced by Global Electric Motorcars, known for their eco-friendly and compact designs suitable for low-speed transportation needs.

F.O.B.

An international commercial term defining at which point the risk and expense of shipped goods transfer from the seller to the buyer; F.O.B. stands for "Free On Board."

C.I.F.

Stands for Cost, Insurance, and Freight, a term used in international trade where the seller is responsible for covering the costs, insurance, and freight of delivering goods to a specified port.