Which of the Following Statements About a Firm in a Perfectly

Multiple Choice

Which of the following statements about a firm in a perfectly competitive industry is true?

A) The firm can improve its competitive position and sell more output by advertising its product.
B) The firm maximizes its profit by producing where P = ATC.
C) The firm maximizes its profit by producing where P = AVC.
D) The firm will not produce at all if P < ATC.
E) The firm will not produce at all if P < the minimum of AVC.