At the Profit Maximizing Level of Output in a Competitive

question 59

Multiple Choice

At the profit maximizing level of output in a competitive industry,the firm is:

• A)making economic profit.
• B)losing money on each unit sold.
• C)making zero accounting profit.
• D)making abnormal profits

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Definitions:

Sealed-Bid

A type of auction or tender where bidders submit confidential offers, and usually, the highest bid wins without the bids being disclosed to other participants.

Second-Price Auction

In a second-price auction, the highest bidder wins but pays the price bid by the second-highest bidder, encouraging participants to bid their true value.

Expected Revenue

The anticipated amount of money a business expects to receive over a certain period, usually as a result of sales or services.

Foreclosed

A legal process in which a lender takes control of a property after the borrower fails to meet the repayment terms of the loan.