For a Perfectly Competitive Firm,profit Is Maximized at the Output

question 78

Multiple Choice

For a perfectly competitive firm,profit is maximized at the output level where
i.total revenue exceeds total cost by the largest amount.
ii.marginal revenue equals marginal cost.
iii.price equals marginal cost.

• A) i only
• B) ii only
• C) ii and iii
• D) i and ii
• E) i, ii, and iii

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Definitions:

Sustained Competitive Advantage

The ability of a firm to maintain a unique value proposition in the market that cannot be easily replicated by competitors, thus ensuring long-term success.

Strategy

The formulation of organizational objectives, scopes, and action plans for gaining advantage.

Objectives

Goals or outcomes that an organization or individual aims to achieve within a specified timeframe.

Strategic Planning

The process of defining an organization's strategy or direction, and making decisions on allocating its resources to pursue this strategy.