The market price is determined bymultiple choice 1marginal revenue and average total cost.market demand and market supply.marginal revenue and marginal cost.b. To determine the firm's profit-maximizing output, the firm will set its marginal revenue equal tomultiple choice 2marginal cost.market price.average total cost.average variable cost.c. A firm is making an economic profit if, at the profit-maximizing output, the market price ismultiple choice 3less than average total cost.greater than average total cost.greater than average variable cost.less than average variable cost.d. If firms are earning economic profits, the market price willmultiple choice 4fall as some existing firms exit the market.fall as new firms enter the market.increase as some existing firms exit the market.increase as new firms enter the market.

In a perfectly competitive market, how does a firm determine its optimal level of output?By equating marginal cost to marginal revenueBy equating price to average total costBy equating price to average variable costBy equating average revenue to average total cost

Multiple Choice QuestionIn the short run, monopolistically competitive firms maximize profits or minimize losses by producing the output level whereMultiple choice question.marginal revenue equals average total cost.marginal revenue equals marginal cost.price equals average variable cost.price equals marginal cost.marginal revenue equals price.

A company conducting business in a monopolistically competitive market will most likely maximise profits when its output quantity is set such that ______.Average cost is minimised.Marginal revenue equals average cost.Marginal revenue equals marginal cost.

A firm that sought to "maximize market share” would choose to produce an output level for which marginal revenue was equal toQuestion 5Select one:a.average cost.b.zero.c.marginal cost.d.price.

At which point does a firm maximise profit?Marginal revenue = Average total costMarginal cost = Marginal revenue Marginal cost = Average total cost Marginal revenue = Demand