To Maximize Profits in the Short Run,a Perfectly Competitive Firm

question 101

Multiple Choice

To maximize profits in the short run,a perfectly competitive firm will produce that output at which:

• A)marginal revenue equals demand.
• B)price equals marginal revenue.
• C)price equals marginal cost.
• D)marginal revenue equals average total cost.
• E)total revenue equals total cost.

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Definitions:

Rules

Explicit or understood regulations or principles governing conduct or procedure within a particular area or activity.

Authority

The power or right to give orders, make decisions, and enforce obedience.

Winter Job Program

A government or organizational initiative designed to provide employment opportunities during the winter months, often in areas affected by seasonal unemployment.

Equitably

In a manner that is fair, just, and impartial, ensuring equal treatment or opportunities for all.