Which of the Following Is True of a Perfectly Competitive

question 234

Multiple Choice

Which of the following is true of a perfectly competitive market?

• A) If economic profits are earned then the price will fall over time.
• B) In long-run equilibrium P = MR = SRMC = SRATC = LRAC.
• C) A constant-cost industry exists when the entry of new firms has no effect on their cost curves.
• D) All of these.

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Definitions:

Origin Contract

A contractual agreement specifying the original terms and conditions set forth by the parties involved in a transaction or negotiation.

Risk of Loss

The potential that an investment's value may decrease or that a business may suffer losses.

Transit

The movement of people or goods from one location to another, which can involve multiple modes of transportation such as buses, trains, and ships.

Conditional Sales Contract

A sales agreement that grants possession of an asset to the buyer, but withholds legal ownership until all terms have been fulfilled, typically payment in full.