When Economists Say That a Perfectly Competitive Firm Is a "Quantity

question 58

Multiple Choice

When economists say that a perfectly competitive firm is a "quantity adjuster," they mean that

• A)it adjusts its output in response to changes in prices.
• B)it can vary its output by an infinite amount.
• C)it is not concerned with cost factors.
• D)its marginal-cost curve coincides with its own demand curve.
• E)changing the output level does not affect the costs of production.

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Definitions:

Genotype

The genetic makeup of an individual organism, encompassing all of its genes.

Phenotype

The set of observable characteristics of an individual resulting from the interaction of its genotype with the environment.

Carrier

A person whose genotype includes a gene that is not expressed in the phenotype. The carried gene occurs in half of the carrier’s gametes, and thus is passed on to half of the carrier’s children. If such a gene is inherited from both parents, the characteristic appears in the phenotype.

Multifactorial

Involving or resulting from many different factors or causes, often used in the context of genetics, diseases, or complex traits.