Scenario 9.2 Consider a Publicly Held Firm (One Whose Stock Shares Are

Multiple Choice

Scenario 9.2
Consider a publicly held firm (one whose stock shares are traded on the stock exchange) that earned revenue worth $350 million and incurred land, labor, and debt costs worth $320 million. The stockholders who have invested a total of $100 million in this firm could have earned 10 percent return on other comparable investments.
-A perfectly competitive firm maximizes profit when:

A) its marginal revenue is equal to its marginal cost.
B) its marginal revenue is greater than its marginal cost.
C) its marginal cost is negative.
D) its marginal cost is greater than its marginal revenue.
E) its marginal cost is minimum.