A Purely Competitive Firm Can Be Identified by the Fact

question 298

Multiple Choice

A purely competitive firm can be identified by the fact that

• A)there are other firms in the industry producing similar products.
• B)it is making only normal profits in the short run.
• C)its average revenue equals its marginal revenue.
• D)it experiences diminishing marginal returns.

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Definitions:

Leadership

The action of leading a group of people or an organization, or the ability to do this, which involves establishing a clear vision, sharing that vision with others so they will follow willingly, providing information, knowledge, and methods to realize that vision.

Power

The ability or capacity to influence or control the behavior of others or the course of events.

Manipulation

The act of skillfully controlling or influencing something or someone, often in a deceptive way.

Process Theories

Explanations focusing on how things happen through a sequence of actions or steps leading to a particular outcome.