Because Each Perfectly Competitive Firm Sells a Product Identical to That

question 97

Multiple Choice

Because each perfectly competitive firm sells a product identical to that of the other firms

• A) each firm tries to cut prices to increase its market share.
• B) each firm's output is a perfect substitute for the output of any other firm.
• C) each firm expects to earn some economic profit.
• D) the demand for each firm's product is perfectly inelastic.

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Definitions:

Persuasive

Having the ability to convince or influence someone to believe or do something through reasoning or the use of emotive language.

"You Must"

A directive phrase indicating obligation or necessity, often used to emphasize the importance of following a command or advice.

Motivate Action

The process of stimulating interest or initiating an impulse in someone to do something or achieve a goal.

Persuasive Request

A communication aimed to influence, change the mind, or urge the receiver to take some action through convincing arguments.