Which of the Following Is True of a Perfectly Competitive

question 138

Multiple Choice

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

• A) The firm is a price maker.
• B) If the firm wishes to maximize profits it will produce an output level in which total revenue equals total cost.
• C) The firm will not earn an economic profit in the long run.
• D) The firm's short-run supply curve is its MC curve below its AVC curve.

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Definitions:

Retail Investors

Individual investors who buy and sell securities for their personal account, and not for another organization or company.

Date of Payment

The specific date on which a declared dividend is paid out to shareholders or a debt obligation is fulfilled.

Ex-Dividend

A status indicating that a stock is trading without the right to receive the most recently declared dividend.

Declared Dividends

Dividends announced by a company's board of directors that are to be paid out to shareholders.