Which Statement Is TRUE of Firms in Both Perfect Competition

question 237

Multiple Choice

Which statement is TRUE of firms in both perfect competition and monopolistic competition?

• A)The long-run price is equal to marginal revenue,marginal cost,and average total cost.
• B)Long-run economic profits are equal to zero.
• C)The long-run level of output is at the point where average total cost is minimized.
• D)Price is equal to marginal cost,ensuring that the efficient level of output is produced.

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Definitions:

Option Holder

An individual or entity that possesses the rights, but not the obligation, to buy or sell a specified amount of an underlying asset at a fixed price within a certain time frame.

Stock Value

The price of an individual share of a company's stock, reflecting the market's assessment of its worth.

Efficiency

The measure of how effectively resources (such as time, money, and effort) are used to achieve a goal or perform a task.

Customer Satisfaction

A measure of how products or services provided by a company meet or exceed customer expectation.