If Price = Marginal Cost at the Output Produced by a Perfectly

question 32

Multiple Choice

If price = marginal cost at the output produced by a perfectly competitive firm and the firm is earning an economic profit, then

• A)marginal revenue is less than price.
• B)average total cost is at a minimum.
• C)total revenue equals total cost.
• D)price exceeds average total cost.

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Definitions:

Deinstitutionalization

The process of releasing individuals from institutional care (such as psychiatric hospitals) to care in the community.

Mentally Ill

Individuals suffering from mental health disorders that affect their thinking, feeling, mood, or behavior.

Halfway Houses

Facilities that provide a transition for individuals, such as recovering addicts or prisoners, back into society, offering support and supervision.

Poverty Line

A financial threshold below which individuals or families are considered to live in poverty, based on their income or consumption levels.