Which One of the Following Characteristics Is Shared by Perfect

question 4

Multiple Choice

Which one of the following characteristics is shared by perfect competition and monopolistic competition?

• A)Firms face a downward-sloping demand curve.
• B)Profit-maximizing quantity occurs where MC = MR.
• C)Long-run equilibrium price equals minimum ATC.
• D)Firms make an economic profit in the long run.
• E)Demand is perfectly elastic.

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Definitions:

Seasonal Fluctuations

Variations in demand, supply, or other economic factors that regularly occur at specific times of the year due to changes in season.

Demand Increases

A rise in the quantity of a product or service that consumers are willing and able to purchase at various prices, often leading to adjustments in production or pricing strategies.

Smoothing Constants

Parameters used in exponential smoothing methods for forecasting that determine the weight of historical data in making predictions.

Naive Forecast

A forecasting technique that assumes future values will be the same as past values, often used as a baseline for more complex models.