For a given quantity, the total profit of a perfectly competitive firm is equal to the vertical distance between the firm's total revenue curve and its total cost curve.

Question

Quizplus · Accepted Answer

This statement accurately reflects the concept of profit for a perfectly competitive firm. Total revenue represents the amount of money the firm receives from selling its products, while total cost represents the expenses the firm incurs in producing those products. The vertical distance between these two curves represents the firm's profit, or the amount of money it earns after covering its costs.

For a Given Quantity, the Total Profit of a Perfectly