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:

Psychographic Segmentation

A marketing strategy that categorizes audiences based on their personality traits, values, attitudes, interests, and lifestyles to better tailor products and messages.

Baby Boomers

Generational cohort of people born after World War II, between 1946 and 1964.

Self-fulfillment

The realization or fulfillment of one's talents and potentialities, especially considered as a drive or need present in everyone.

Psychographic Segmentation

A market segmentation technique that divides consumers based on their lifestyle, interests, values, and personality traits.