Which of the Following Is True for a Purely Competitive

question 204

Multiple Choice

Which of the following is true for a purely competitive firm in short-run equilibrium?

• A)The firm is making only normal profits.
• B)The firm's marginal cost is greater than its marginal revenue.
• C)The firm's marginal revenue is equal to its marginal cost.
• D)A decrease in output would lead to a rise in profits.

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A condition or status that is earned or attained through one's actions, as opposed to being ascribed by default of birth or social position.

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The exchange between two or more individuals, which forms the basis of social relationships and society.

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