Which of the Following Statements Is Correct

question 148

Multiple Choice

Which of the following statements is correct?

• A)In the long run, both perfectly competitive firms and monopolistically competitive firms operate with excess capacity.
• B)A firm operates with excess capacity when, in the long run, its level of output is below the efficient scale.
• C)For any firm, efficient scale is the level of output at which the average-total-cost curve is tangent to the demand curve.
• D)All of the above are correct.

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Definitions:

Minimum Wage

The lowest hourly rate employers can legally pay their workers, as set by government law.

Uniforms

Standardized clothing worn by members of an organization while participating in that organization's activity.

Upstream Price Discrimination

A pricing strategy where producers change prices at different stages of production or distribution, affecting the prices paid by retailers or further downstream sellers.

Arbitrage

The process of buying and selling assets or securities across different markets or forums to profit from price differences.