A Perfectly Competitive Firm Will Always Maximize Its Profit or Minimize

question 52

Multiple Choice

A perfectly competitive firm will always maximize its profit or minimize its loss by:

• A)setting marginal cost equal to marginal revenue in order to determine the optimal quantity of output.
• B)setting marginal cost above average cost.
• C)setting total cost minus total revenue at its maximum level.
• D)creating a unique product.

---

Definitions:

Pulling Effort

The force required to move or tow something, often measured to ensure the adequacy of a vehicle's towing capacity.

Force

Push or pull effort measured in units of weight. Force represents the ability to do work but this ability does not necessarily result in any work done; for instance, you can push all you like on a tractor/trailer combination but it is unlikely to move the vehicle. The formula for force (F) is calculated by multiplying pressure (P) by the area (A) it acts on. F=P*A.

Perfect Vacuum

A theoretical state where a space is completely devoid of matter, including air or any other gases, achieving a total absence of pressure.

Sealed Vessel

A container designed to be completely airtight, preventing the exchange of substances with its environment.