Which Statement Is False

question 6

Multiple Choice

Which statement is false?

• A)A profit-maximizing perfectly competitive firm will increase production when price exceeds marginal cost.
• B)The lowest point on a perfectly competitive firm's short-run supply curve is at the shutdown point.
• C)A perfectly competitive firm will operate at that output where MC equals MR only when it is minimizing losses.
• D)A profit-maximizing perfectly competitive firm will decrease production when marginal cost exceeds price.

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Definitions:

Face Value

The nominal value stated on a financial instrument, such as a bond or stock certificate.

Brokerage Fees

Charges levied by a broker for facilitating transactions between buyers and sellers.

Unrealized Loss

A loss that occurs on paper when the current market value of an investment is lower than its cost but has not been actualized through a sale.

Available-For-Sale Securities

Financial assets held by a firm that can be sold in the financial markets, not classified as held-to-maturity or trading securities.