The Excess of Price Over Marginal Cost Is Not the Best

question 61

Multiple Choice

The excess of price over marginal cost is not the best measure of profit per unit because:

• A)marginal cost is not always equal to average cost.
• B)it shows the accounting profit of a firm and not the economic profit.
• C)it does not take into account the variable costs of the firm.
• D)profitable firms produce at a level where price is less than marginal cost.

---

Definitions:

Etiology

The study of the cause(s) of diseases and disorders.

Disorder

A disruption to normal functioning that can affect the body or mind and is often characterized by specific symptoms and signs.

Symptoms

Observable signs or indications of a disease, disorder, or condition.

Mental Illness

A wide range of mental health conditions that affect mood, thinking, and behavior, often resulting in distress or impairment in functioning.