The Behavior of the Perfectly Competitive Firm

question 44

Multiple Choice

The behavior of the perfectly competitive firm

• A)theoretically leads to an inefficient allocation of resources.
• B)maximizes the benefits to consumers, given the resources available to the economy.
• C)reduces output in order to raise prices in the short term.
• D)results in excess capacity and inefficiency.

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Definitions:

Stable Attribution

An individual's tendency to believe that a person's behavior or outcome is due to traits or situations that are consistent over time.

Unstable Attribution

A cognitive process where individuals inconsistently or unpredictably attribute causes or reasons to their own or others' behaviors.

Outgroup

A social group to which an individual does not identify or belong, often seen as fundamentally different or apart from one's ingroup.

Subculture

A cultural group within a larger culture, often having beliefs or interests at variance with those of the larger culture.