A Competitive Firm Is Choosing an Output Level to Maximize

question 4

Multiple Choice

A competitive firm is choosing an output level to maximize its profits in the short run.Which of the following is not necessarily true? (Assume that marginal cost is not constant and is well defined at all levels of output.)

• A)Marginal cost is at least as large as average variable cost.
• B)Total revenues are at least as large as total costs.
• C)Price is at least as large as average variable cost.
• D)Price equals marginal cost.
• E)The marginal cost curve is rising.

---

Definitions:

Residency Patterns

The arrangements or customs regarding where individuals or nuclear families reside, which can vary widely across cultures, including matrilocal, patrilocal, and neolocal practices.

Patrilocal

Refers to a cultural practice where a married couple resides with or near the husband's parents.

Neolocal

A residential pattern in which a newly married couple establishes their household in a location separate from both the husband's and the wife's relatives.

Myth Of The Perfect Marriage

The false belief that marriages can be flawless and without challenges, which can create unrealistic expectations.