Which of the Following Is True Regarding a Perfectly Competitive

question 327

Multiple Choice

Which of the following is true regarding a perfectly competitive firm?

• A) The firm can charge a lower price than its competitors and thereby sell more output and increase its profits.
• B) The firm always earns a normal profit.
• C) The firm's marginal revenue continually decreases.
• D) The firm's minimum efficient scale is small relative to the market demand.

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Definitions:

Introversion

A personality trait characterized by a focus on internal feelings rather than external sources of stimulation, often involving a preference for solitary activities.

Trait Theories

Trait Theories are a major perspective in psychology that theorizes personality is composed of enduring characteristics which influence behavior across situations.

Social-cognitive

A theory that emphasizes the role of observational learning, social experience, and reciprocal determinism in the development of personality.

Describing

The act of giving a detailed account or explanation of something in words.