If a Perfectly Competitive Firm Is Maximizing Its Profit and Is

question 149

Multiple Choice

If a perfectly competitive firm is maximizing its profit and is making an economic profit,which of the following is correct?
i.Price equals marginal revenue.
ii.Marginal revenue equals marginal cost.
iii.Price is greater than average total cost.

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

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Definitions:

Abolish

To formally put an end to a system, practice, or institution, such as slavery or the death penalty.

Western Hemisphere

A term referring to the half of Earth that lies west of the Prime Meridian and east of the antimeridian, encompassing the Americas and portions of Europe, Africa, and Oceania.

Slavery

The practice of owning human beings as property who are forced to work without pay and denied personal freedom.

George McClellan

A major general during the American Civil War, known for his cautious tactics and contentious relationship with President Abraham Lincoln.