To Maximize Profit, a Perfectly Competitive Firm

question 99

Multiple Choice

To maximize 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:

Justifications

Reasons or arguments presented in support of an action, belief, or theory.

Rationalizations

The process of providing reasonable explanations or justifications for thoughts, actions, or feelings, often to hide true motives.

Criminals

Individuals who have committed a crime or engaged in unlawful activities.

Social Pressures

The influence that is exerted by society on individuals that encourages them to conform to certain norms or behaviors.