Which Is Necessarily True for a Purely Competitive Firm in Short-Run

question 249

Multiple Choice

Which is necessarily true for a purely competitive firm in short-run equilibrium?

• A)Marginal revenue minus marginal cost equals zero.
• B)Price minus average total cost equals zero.
• C)Total revenue minus total cost equals zero.
• D)Marginal revenue is zero.

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Definitions:

Classical Conditioning

A learning process where a neutral stimulus becomes associated with a meaningful stimulus and acquires the capacity to elicit similar responses.

Rescorla

A psychologist notable for his work with Robert A. Wagner on a model of classical conditioning that emphasizes the importance of the cognitive aspect of learning.

Prediction

A statement about what will happen in the future based on current understanding or analysis.

Stimulus Generalization

The tendency for the learned response to stimuli similar to the original conditioned stimulus to elicit similar responses.