At the Profit-Maximising Level of Output for a Perfectly Competitive

question 225

Multiple Choice

At the profit-maximising level of output for a perfectly competitive firm, price equals marginal cost.Which of the following is also true?

• A)The difference between total revenue and total cost is the greatest.
• B)Total revenue equals total cost.
• C)Average revenue equals average total cost.
• D)Marginal profit equals marginal cost.

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Definitions:

Shelf Registration

A regulatory process that allows a company to register a new issue of securities without having to sell the entire issue at once.

Securities

Financial instruments representing some type of financial value, such as stocks, bonds, or options.

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Individuals or entities that possess an understanding and experience in financial and business matters, making them capable of evaluating investment risks and merits.