A Perfectly Competitive Firm in the Short Run Maximises Its

question 101

Multiple Choice

A perfectly competitive firm in the short run maximises its profit by producing the output where:

• A) average cost equals price.
• B) marginal product equals marginal revenue.
• C) total profit is at maximum.
• D) total profit is at minimum.

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Definitions:

Financial Statements

Financial statements are formal records of the financial activities and position of a business, person, or other entity, presented in a structured manner.

Sales

The total revenue generated from goods or services sold by a company within a specific period.

Capital Gains

The income gained when the selling price of assets such as stocks, bonds, or real estate surpasses their original buying price.

Economic Growth

An increase in the production of goods and services in an economy over a period of time.