In Which One of the Following Situations Will a Perfectly

question 1

Multiple Choice

In which one of the following situations will a perfectly competitive firm make an economic profit?

• A)MR > AVC
• B)MR > ATC
• C)ATC > MC
• D)ATC > MR
• E)MC > AVC

---

Definitions:

Futures Contract

A legal document that obligates parties to buy or sell a commodity at a price determined in advance, on a specified future date.

Assembly

The process of putting together various components or parts to form a finished product.

Speculation Strategy

An investment strategy aimed at making profits from market value changes, often involving high risk and short-term commitments.

Long Oil Futures

An investment strategy involving the purchase of oil futures contracts in anticipation of oil prices increasing in the future.