A Perfectly Competitive Firm Will Maximise Its Profit at the Rate

question 23

Multiple Choice

A perfectly competitive firm will maximise its profit at the rate of output where the vertical distance between its total revenue and total cost is the largest.This is the same rate of output where

• A)average total cost equals marginal revenue.
• B)marginal revenue equals marginal profit.
• C)marginal revenue equals marginal cost.
• D)marginal revenue equals average revenue.

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Definitions:

Unconscionable Contract

An agreement that is so unfairly one-sided that it is deemed unenforceable under the law.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to standardize and simplify the law.

Sale of Goods

A transaction between a buyer and a seller in which the seller transfers ownership of goods to the buyer for a price.

Contracts for Services

Agreements between parties where one agrees to provide a service to the other in exchange for compensation.