Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

20. The profit-maximizing level of output for a perfectly competitive firm occur

ID: 1251871 • Letter: 2

Question

20. The profit-maximizing level of output for a perfectly competitive firm occurs where there is equality between the slopes of the:
A) marginal revenue and demand curves.
B) marginal revenue and marginal cost curves.
C) total revenue and total cost curves.
D) average revenue and average variable cost curves.

21. The profit-maximizing level of output for a perfectly competitive firm occurs where:
A) marginal revenue equals price.
B) marginal revenue equals marginal cost.
C) total revenue equals total cost.
D) average revenue equals average variable cost.

22. Charges that must be paid for the use of factors of production such as labor and capital, together with estimated depreciation costs, are:
A) explicit costs.
B) accounting profits.
C) implicit costs.
D) economic profits.

23. Profit computed using explicit costs as the only measure of costs is:
A) explicit profit.
B) accounting profit.
C) implicit profit.
D) economic profit.

Explanation / Answer

B) marginal revenue and marginal cost curves.

D) average revenue equals average variable cost.

B) accounting profits.

A) explicit profit.