In Which of the Following Situations Will a Perfectly Competitive

question 111

Multiple Choice

In which of the following situations will a perfectly competitive firm's profit always increase when it increases its output?

• A)When price is greater than marginal revenue
• B)When price is less than marginal revenue
• C)When price is greater than marginal cost
• D)When price is less than marginal cost
• E)When price is equal to marginal cost

---

Definitions:

Distribution

The process of making a product or service available for use or consumption by a consumer or business user.

Effective Annual Rate

The real return on an investment, considering the effect of compounding interest over a period, typically one year.

Monthly Return

The investment profit or loss during a one-month period, often used to assess performance.

Investment

The allocation of resources, usually money, in the expectation of generating an income or profit.