Which of the Following Expressions Is Correct for a Competitive

question 299

Multiple Choice

Which of the following expressions is correct for a competitive firm?

• A) Profit = (Quantity of output)x (Price - Average total cost)
• B) Marginal revenue = (Change in total revenue)/(Quantity of output)
• C) Average total cost = Total variable cost/Quantity of output
• D) Average revenue = (Marginal revenue)x (Quantity of output)

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Definitions:

Average Time

The mean value that summarizes how long a process or task takes, calculated by dividing the total time by the number of occurrences.

System

A set of connected or interrelated entities that form a unified whole, functioning together towards a common goal.

Poisson Process

A Poisson process is a statistical process that models the occurrence of random events in a fixed interval of time or space.

Mean Arrival Time

The average time it takes for an entity or set of entities to reach a certain point, commonly used in queueing theory and logistics.