All firms maximize profits by producing an output level where marginal revenue equals marginal cost; for firms operating in perfectly competitive industries, maximizing profits also means producing an output level where price equals marginal cost.
a) true
b) false

The correct answer is "a) true".

Explanation: All firms maximize profits by producing an output level where marginal revenue equals marginal cost; for firms operating in perfectly competitive industries, maximizing profits also means producing an output level where price equals marginal cost. IS TRUE.

Companies maximize profits by producing to the point where marginal income is equal to marginal cost because this means that the cost incurred to produce one more unit of production is less than or equal to the income generated by producing that unit. In perfect competition, companies are accepting prices, therefore companies will have a constant marginal income that will be equal to the price, maximizing profits at a production level in which :

MARGINAL INCOME = PRICE = MARGINAL COST.

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.