A Perfectly Competitive Firm in the Short-Run Maximizes Its Profit

question 154

Multiple Choice

A perfectly competitive firm in the short-run maximizes its profit by producing the output where:

• A) marginal cost equals price.
• B) marginal cost equals marginal revenue.
• C) total revenue minus total cost is at a maximum.
• D) all of the above.

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Definitions:

Merchandise Needs

The requirements for goods and products a business needs to buy for resale or for operational purposes.

Vendor

A person or business that provides products or services to another party, often as part of a supply chain.

Sales Prices

The set amount of money that a product or service is offered for sale to customers.