Which of the Following Is True for a Firm Operating

question 114

Multiple Choice

Which of the following is true for a firm operating under perfect competition, monopolistic competition, and monopoly?

• A) Firms earn positive economic profits in the long run.
• B) Firms earn zero economic profits in the long run.
• C) Profits are maximized when marginal cost equals marginal revenue.
• D) Price equals marginal cost.

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Definitions:

Financial Wellbeing

The state of being financially healthy, where one has control over finances, the ability to absorb a financial shock, and the freedom to make choices that allow enjoyment of life.

Physical Attractiveness

The degree to which a person's physical traits are considered aesthetically pleasing or beautiful by others.

Similarity

The extent to which two things are alike or share common characteristics.

Contact

The act or state of physical touching or being in close proximity, or the initiation of communication between individuals.