If a purely competitive firm is maximizing economic profit:

A) it is necessarily maximizing per-unit profit.
B) it may or may not be maximizing per-unit profit.
C) then per-unit profit will be minimized.
D) it is necessarily overallocating resources to its product.

Economic Profit

A rephrasing of economic profits; it represents the financial gain exceeding the total costs, considering both explicit and implicit costs.

Per-unit Profit

The profit earned by a company for each unit of product sold, calculated by subtracting the cost of producing one unit from the selling price of one unit.

Purely Competitive Firm

A business that operates in a market where there are many buyers and sellers, the products are homogenous, and there are no barriers to entering or exiting the market.