We Know That a Perfectly Competitive Firm Is a Price

question 91

Multiple Choice

We know that a perfectly competitive firm is a price taker because

• A) MC and ATC are equal at the profit-maximising amount of output.
• B) its MC curve slopes upward.
• C) its demand curve is horizontal.
• D) its ATC curve is U-shaped.
• E) it has no supply curve.

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Definitions:

Suspensory Ligaments

Fibrous tissues that connect the lens of the eye to the ciliary body, adjusting the lens shape for focusing.

Fovea

A small depression in the retina of the eye where visual acuity is highest, due to the high density of cones, and no rods.

Sensory Adaptation

The process by which sensory receptors become less sensitive to constant stimuli over time.

Visual Impulses

Visual impulses are electrical signals generated by the retina in response to light, transmitted through the optic nerve to the brain, where they are interpreted as vision.