A Perfectly Competitive Firm Will Maximize Profits by Choosing an Output

question 139

Multiple Choice

A perfectly competitive firm will maximize profits by choosing an output level where

• A)Price is greater than marginal cost.
• B)Price equals marginal cost.
• C)Price equals total cost.
• D)Price is greater than total cost.

---

Definitions:

Denial

A psychological defense mechanism where an individual refuses to accept reality or facts, thereby avoiding a potentially distressing truth.

Rationalization

A defense mechanism in which controversial behaviors or feelings are justified and explained in a seemingly rational or logical manner to avoid the true explanation.

Active Effort

The deliberate and purposeful exertion of energy towards achieving specific goals or tasks.

Repression

A defense mechanism where distressing thoughts, memories, or desires are unconsciously blocked from conscious awareness.