Which of the Following Conditions Would Distinguish a Competitive Firm

question 70

Multiple Choice

Which of the following conditions would distinguish a competitive firm from a monopolist?

• A)The existence of a demand curve for the firm.
• B)The slope of the demand curve facing the firm.
• C)The rule of profit maximization, i.e., produce where MR = MC.
• D)The relationship between marginal revenue and total revenue.
• E)The existence of diseconomies of scale.

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Definitions:

Inventories

Assets held for sale in the ordinary course of business, in the process of production for such sale, or in the form of materials to be consumed in the production process.

External Party

An individual or organization that is separate from the entity being referred to and not directly involved in its operations or management.

Legal Entities

Organizations, companies, or individuals that have legal rights and obligations, allowing them to enter into contracts, sue, and be sued.

Consolidation Adjustment

Adjustments made to financial statements to account for the financial results of subsidiary companies as if they were part of the parent company.