Which of the Following Is True of Firms in Both

question 33

Multiple Choice

Which of the following is true of firms in both perfect competition and monopolistic competition?

• A)The long-run price is equal to marginal revenue, marginal cost, and average total cost.
• B)Long-run economic profits are equal to zero.
• C)The long-run level of output is at the point where average total cost is minimized.
• D)Price is equal to marginal cost, ensuring that the efficient level of output is produced.

Understand the concept of virtualization, its roles in creating virtual servers, and its contribution to fault tolerance and redundancy.

Recognize the role of cloud storage services like Google Drive and Dropbox in cloud computing.

Understand the concept and benefits of grid computing and its distinction from cloud computing.

Comprehend the differences between public, private, vertical, and community clouds and their use-cases.

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Definitions:

Chief Financial Officer

A senior executive responsible for managing the financial actions of a company.

Operating Leverage

A measure of how sensitive a company's operating income is to a change in revenues, indicating the extent to which a firm can increase profits by increasing sales.

Fixed Costs

Expenses that do not change in proportion to the level of goods or services produced within a certain period.

Variable Costs

Costs that vary directly with the level of production or service provision.