Which of the following expressions is correct for a competitive firm?
A)profit = (quantity of output) x (price - average total cost)
B)marginal revenue = (change in total revenue)/(quantity of output)
C)average total cost = total variable cost/quantity of output
D)average revenue = (marginal revenue) x (quantity of output)

Question

Quizplus · Accepted Answer

For a competitive firm, profit is calculated as the quantity of output multiplied by the difference between price and average total cost.

Which of the Following Expressions Is Correct for a Competitive