Which of the Following Is True of a Perfectly Competitive

question 35

Multiple Choice

Which of the following is true of a perfectly competitive firm?

• A) The firm is a price maker.
• B) If the firm wishes to maximize profits it will produce an output level in which marginal revenue exceeds marginal cost.
• C) The firm will not earn an economic profit in the long run.
• D) The firm's short-run supply curve is its MC curve below its AVC curve.

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Definitions:

Middle Range

Pertaining to theories or concepts that fall between grand theories and discrete observations, providing a manageable framework for study and analysis.

Theories

Systematic ideas or principles formulated to explain phenomena, guide research and practice in various fields.

Scope and Breadth

The range or extent of coverage, influence, or action of a particular subject or activity.

Theoretical Base

Constitutes the fundamental ideas and principles behind a specific field or discipline that guide research, practice, and understanding.