To Maximise Profit, a Perfectly Competitive Firm

question 53

Multiple Choice

To maximise profit, a perfectly competitive firm

• A)should sell the quantity of output determined by the interaction between industry demand and supply.
• B)should sell the quantity of output that results in a value for total revenue that is equal to total cost.
• C)should produce the quantity of output that results in the greatest difference between total revenue and total cost.
• D)should produce the quantity of output that results in the greatest difference between marginal revenue and marginal cost.

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Definitions:

Strategic Intent

The focus on and application of organizational energies on a unifying and compelling goal.

Unifying Target

A common goal set for a group or team to focus their efforts towards achieving together.

Stakeholders

The persons, groups, and other organizations that are directly affected by the behaviour of the organization and that hold a stake in its performance.

Strategic Accomplishments

Achievements that significantly contribute to the fulfillment of key goals or objectives within a strategic plan.