At its current level of quantity, a perfectly competitive firm's marginal revenue is $3.25, its short- run marginal cost is $3.25 and its long- run marginal cost is $3.25. Which of the following statements is true?
A) The firm is maximizing both its short- run and long- run profit.
B) The firm is maximizing its long- run profit, but not its short- run profit.
C) The firm is not maximizing its short- run or long- run profit.
D) The firm is maximizing its short- run profit, but not its long- run profit.
Correct Answer:
Verified
Q59: If a perfectly competitive firm is producing
Q60: A perfectly competitive firm is producing 1,100
Q61: In response to an increase in the
Q62: Perfectly competitive firms are earning economic profits
Q63: Perfectly competitive firms are earning economic profits
Q65: If at its current production level, a
Q66: At its current level of quantity, a
Q67: In a perfectly competitive market, a decrease
Q68: Perfectly competitive firms are earning economic profits
Q69: In a perfectly competitive market, an increase
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents