Which of the Following Characteristics Is True for a Competitive

question 180

Multiple Choice

Which of the following characteristics is true for a competitive price searcher but not for a price taker?

• A) The firm earns zero profits in the long run.
• B) The firm has an incentive to operate efficiently.
• C) A reduction in market demand will lead to short-run losses.
• D) Price is above marginal cost in long-run equilibrium.

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Definitions:

Modern Test

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The ability to learn, understand, and make judgments or have opinions that are based on reason.

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