Which of the Following Statements About a Competitive Firm Is

question 94

Multiple Choice

Which of the following statements about a competitive firm is correct?

• A)To maximize profits, a competitive firm should produce the output level at which total revenue is greatest.
• B)In long-run equilibrium, a competitive firm will produce at the point of minimum average total costs.
• C)A competitive firm will produce in the short run so long as total receipts are sufficient to cover total fixed costs.
• D)A competitive firm will close down in the short run whenever price is less than the minimum attainable average total cost.

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Definitions:

Basaltic Shield-forming

The process of creating large, gently sloping volcanic mountains through the accumulation of fluid basaltic lava flows.

Welded Tuffs

Volcanic deposits formed from hot ash flows that solidify, with the particles welding together due to the heat.

Andesite

A volcanic rock of intermediate composition, typically found in volcanic arcs associated with subduction zones, characterized by a medium gray or brown color.

Silica Content

The proportion of silicon dioxide (SiO2) in a rock, mineral, or geological sample, influencing its physical properties and behavior.