The Excess of Price Over Marginal Cost Is Not the Best

Multiple Choice

The excess of price over marginal cost is not the best measure of profit per unit because:

A) marginal cost is not always equal to average cost.
B) it shows the accounting profit of a firm and not the economic profit.
C) it does not take into account the variable costs of the firm.
D) profitable firms produce at a level where price is less than marginal cost.