When a Firm Maximizes Its Profit,which of the Following Is

question 76

Multiple Choice

When a firm maximizes its profit,which of the following is correct for firms in monopolistic competition and perfect competition?

• A) P = MC for both types of firms.
• B) P = MR = MC for firms in perfect competition, and P > MR = MC for firms in monopolistic competition.
• C) MR = MC for firms in perfect competition and MR > MC for firms in monopolistic competition.
• D) P > MR = MC for firms in both perfect competition and monopolistic competition.
• E) P = ATC always for firms in both perfect competition and monopolistic competition.

---

Definitions:

Gap Khakis

A specific line of casual pants made by the Gap Inc., characterized by their khaki fabric.

Rationalization

The process of replacing traditional and emotional thought with reason and practicality, often in the context of organizational and technological changes.

Unintended Consequences

Outcomes that are not the ones foreseen and intended by a purposeful action.

Max Weber

A German sociologist, economist, and political scientist known for his work on the development of modern Western society and the concept of the "Protestant Ethic."