For a perfectly competitive firm, which of the following is not true at profit maximization?
A) Market price is greater than marginal cost.
B) Marginal revenue equals marginal cost.
C) Total revenue minus total cost is maximized.
D) Price equals marginal cost.
Answer: A
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Omondi’s country has undergone significant economic growth over the past 15 years. What conclusion can be reached about his country?
a. It is authoritarian. b. It is democratic. c. It is neither authoritarian nor democratic. d. It could be either authoritarian or democratic.
Marginal revenue is the change in:
A. total profit brought about by selling one more unit of output. B. The change in price a firm can charge brought about by selling one more unit of output. C. total revenue brought about by selling one more unit of output. D. output brought about by a $1 change in product price.