Which of the Following Statements Is TRUE for Both a Competitive

question 109

Multiple Choice

Which of the following statements is TRUE for both a competitive market and a single-price monopoly?

• A) The firm maximizes profit by producing the quantity at which marginal revenue equals marginal cost.
• B) The firm can make an economic profit in the long run.
• C) The price is set where the supply curve and demand curve intersect.
• D) The firm always produces at the lowest possible long-run average cost.

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Definitions:

Competition

The rivalry between individuals, groups, or organizations, aiming to achieve superiority in a specific field or outcome.

Social Distinctions

The differences recognized by society that categorize people into groups, often based on socioeconomic status, occupation, ethnicity, or culture.

Styles

Distinctive and identifiable forms or designs in art, clothing, literature, behavior, or other expressions unique to individuals or groups.

Body

The physical structure of a human or animal considered as a whole, often examined in disciplines such as biology, medicine, and sociology for various purposes.