A Profit-Maximizing Firm in a Competitive Market Is Currently Producing

question 448

Multiple Choice

A profit-maximizing firm in a competitive market is currently producing 200 units of output. It has average revenue of $9 and average total cost of $7. It follows that the firm's

• A)average total cost curve intersects the marginal cost curve at an output level of less than 200 units.
• B)average variable cost curve intersects the marginal cost curve at an output level of less than 200 units.
• C)profit is $400.
• D)All of the above are correct.

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Definitions:

Oxygen Debt

A condition that develops when skeletal muscles are used strenuously for a minute or two.

Bones

Rigid organs that constitute part of the endoskeleton of vertebrates, providing support, protection, and aiding in movement.

Joints

Connections between bones that allow for movement and provide mechanical support.

Cell Membrane

The semipermeable membrane surrounding the cytoplasm of a cell, controlling the passage of substances in and out of the cell.