Asked by April Thompson on May 01, 2024
Verified
If a purely competitive firm is producing at the P = MC output and realizing an economic profit,at that output:
A) marginal revenue is less than price.
B) marginal revenue exceeds ATC.
C) ATC is being minimized.
D) total revenue equals total cost.
Marginal Cost
The elevation in aggregate expenditure associated with creating an additional unit of a product or service.
Economic Profit
The difference between total revenue and total costs, including both explicit and implicit costs, reflecting the total gains from undertaking an economic activity.
Marginal Revenue
The extra revenue earned by selling an additional unit of a product or service.
- Scrutinize how economic advantages affect the production planning of a firm.
- Interpret data to determine the profit-maximizing rule and its application.
Verified Answer
Learning Objectives
- Scrutinize how economic advantages affect the production planning of a firm.
- Interpret data to determine the profit-maximizing rule and its application.
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