Which of the Following Statements Is Correct

question 148

Multiple Choice

Which of the following statements is correct?

• A)In the long run, both perfectly competitive firms and monopolistically competitive firms operate with excess capacity.
• B)A firm operates with excess capacity when, in the long run, its level of output is below the efficient scale.
• C)For any firm, efficient scale is the level of output at which the average-total-cost curve is tangent to the demand curve.
• D)All of the above are correct.

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Definitions:

Electroencephalograph (EEG)

A device used to record the electrical activity of the brain through electrodes placed on the scalp.

Theta Waves

Brainwave patterns associated with stages 1 and 2 of sleep, characterized by lower frequency and higher amplitude, and often linked to creativity and emotional processing.

Stage 1 Sleep

The initial stage of the sleep cycle, characterized by light sleep, easy awakenings, and a reduction in bodily movement and heart rate.

Brain Wave Activity

The patterns of electrical signals from the brain, commonly measured by EEG, indicating different states of arousal and consciousness.