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.

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Definitions:

Financial Accounting

The branch of accounting that focuses on the preparation of financial statements for external users.

Globalization

The process of interaction and integration among people, companies, and governments worldwide, often resulting in the exchange of products, services, ideas, and culture.

Managers

Individuals responsible for directing and overseeing the operations and employees within an organization.

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The implementation phase refers to the stage in a project or strategy where plans are executed and the concept is turned into reality.