The Behavior of the Perfectly Competitive Firm

question 44

Multiple Choice

The behavior of the perfectly competitive firm

• A)theoretically leads to an inefficient allocation of resources.
• B)maximizes the benefits to consumers, given the resources available to the economy.
• C)reduces output in order to raise prices in the short term.
• D)results in excess capacity and inefficiency.

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Definitions:

Burglary

Breaking and entering onto the property of another with the intent to commit a felony.

Property Crime

Crimes involving the theft of personal property or damage to property, such as burglary, larceny, arson, or vandalism.

Violent Crime

Criminal acts that involve force or threat of force, including but not limited to murder, rape, robbery, and assault.

Property Crime

A category of crime that involves the theft of property or the destruction of property without consent of the owner.