Which One of the Following Characteristics Is Shared by Perfect

question 75

Multiple Choice

Which one of the following characteristics is shared by perfect competition and monopolistic competition?

• A)Firms face a downward-sloping demand curve.
• B)Profit-maximizing quantity occurs where MC = MR.
• C)Long-run equilibrium price equals minimum ATC.
• D)Firms make an economic profit in the long run.
• E)None of the above.

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Definitions:

Cathexis

An investment of emotional significance in an activity, idea, or object.

Psychic Energy

In psychoanalytic theory, a force primarily associated with the libido or the energy of the unconscious mind.

Psycho-motor Energy

A term related to the connection between mental processing and physical movement.

Homeostasis

The process by which a living organism or system maintains stable internal conditions necessary for survival, despite changes in the external environment.