A perfectly competitive firm will be profitable if price at the profit-maximizing quantity is above: a. ATC.
b. AVC.
c. AFC.
d. MC.

A perfectly competitive firm will be profitable if price at the profit-maximizing quantity is above:

d. MC.

Explanation:

The general rule of profit maximization for a perfectly competitive firm is for the firm (and each firm in the market) to produce the quantity of output where the price (P) = marginal cost (MC).  In this case, the price (P) is a measure of the value that customers place on the good.   The marginal cost (MC) measures what it costs the firm to produce each marginal unit.

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