Answered: 39. A perfectly competitive firm…

39. A perfectly competitive firm maximizes its profit by producing the level of output so that its average total cost equals the market price. True False

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 5.9P

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Question

39. A perfectly competitive firm maximizes its profit by producing the level of output so that its average total cost equals the market price.

True

False

Definition Definition Total cost of producing a certain quantity of a good, divided by the quantity produced. It is the sum of all costs (fixed and variable) required to produce one unit of output.

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