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

question 234

Multiple Choice

At the profit-maximizing 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:

Efficiency

The ratio of the output obtained to the input used in the production process, measuring how well resources are utilized.

Gantt Charts

A type of bar chart that illustrates a project schedule, showing the start and finish dates of the various elements of a project.

Loading Jobs

The process of assigning work to resources, machines, or workstations in a production environment.