When Firms in a Perfectly Competitive Market Face the Same

question 76

Multiple Choice

When firms in a perfectly competitive market face the same costs, in the long run they must be operating

• A)under diseconomies of scale.
• B)with small, but positive, levels of profit.
• C)at their efficient scale.
• D)where price is equal to average fixed cost.

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Definitions:

Variables

Variables refer to characteristics or quantities that can vary or change among individuals or over time.

Central Tendency

A statistical measure that identifies a single value as representative of the middle or typical value of a dataset, commonly found using mean, median, or mode.

Variation

The occurrence of differences among individuals, groups, or populations, often leading to evolutionary change.

Standard Deviation

A statistical measure that represents the dispersion or variance in a set of data points from its mean.