In a Perfectly Competitive Market, the Type of Decision a Firm

question 63

Multiple Choice

In a perfectly competitive market, the type of decision a firm has to make is different in the short run than in the long run. Which of the following is an example of a perfectly competitive firm's short-run decision?

• A) Whether or not to enter or exit an industry.
• B) What price to charge buyers for the product.
• C) Whether or not to change its plant size.
• D) How much to spend on advertising and sales promotion.
• E) The profit-maximising level of output.

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Definitions:

Informal Assessment

An evaluation method that does not follow standardized procedures, often used for observations, interviews, or unstructured tasks.

Bias

In assessments or measurements, it refers to systematic errors that skew results away from the true or intended measurement.

Assessment Process

The systematic collection, review, and use of information about educational programs undertaken for the purpose of improving student learning and development.