A country that shows a deficit in its financial account is a net creditor to the rest of the world

A perfectly competitive firm faces a market clearing price of $150 per unit. Average total costs are at the minimum value of $200 per unit at an output rate of 100 units. Average variable costs are at the minimum value of $100 per unit at an output rate

of 50 units. Marginal cost equals $150 per unit at an output rate of 75 units. It can be concluded that the short-run profit-maximizing output rate is A) 75 units, at which the firm earns zero economic profits per unit sold. B) 75 units, at which the firm earns negative economic profits per unit sold. C) 75 units, at which the firm earns positive economic profits per unit sold. D) 50 units, because price is less than average variable costs.

A perfectly elastic demand function

A. is characteristic of an individual firm operating in a perfectly competitive market. B. shows that the individual firm can increase sales by lowering the price of output. C. has a marginal revenue that is always decreasing. D. shows that a consumer is willing to pay any amount for the product.