At the Profit-Maximizing Level of Output for a Perfectly Competitive

question 234

Multiple Choice

At the profit-maximizing level of output for a perfectly competitive firm, price equals marginal cost.Which of the following is also true?

• A)The difference between total revenue and total cost is the greatest.
• B)Total revenue equals total cost.
• C)Average revenue equals average total cost.
• D)Marginal profit equals marginal cost.

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Definitions:

Aligning Actions

Actions people use to define their apparently questionable conduct as actually in line with cultural norms, thereby repairing social identities, restoring meaning to situations, and reestablishing smooth interaction.

Differentiate

To recognize or ascertain what makes something or someone distinct or different from others.

Example

An illustration or instance that is representative of a group or set.

Identity

The categories people use to specify who they are—that is, to locate themselves relative to other people.