If a Competitive Firm Maximizes Short-Run Profits by Producing Some

question 103

Multiple Choice

If a competitive firm maximizes short-run profits by producing some quantity of output,which of the following must be TRUE at that level of output?

• A) p = MC
• B) MR = MC
• C) p ≥ AVC
• D) All of the above.

---

Definitions:

Openness to Experience

A personality trait characterized by a willingness to try new things and be open to new experiences and ideas.

Personality Factor

An aspect of personality that can be measured and represents significant variation among individuals.

Narrow-Minded

Having a limited or inflexible perspective, often unwilling to consider alternative ideas or viewpoints.

Patterns of Behavior

Repeated actions or reactions that occur in a predictable manner, often based on habits, culture, or psychological conditioning.