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.

---

Definitions:

Recall Column

A method or technique in note-taking or spreadsheets where specific information is designated for review and summary to aid memory retention.

Main Ideas

Key concepts or central thoughts that are important points in a text or discussion.

Supplemental Instruction

Additional teaching sessions designed to help students understand core course content.

Lectures

A method of teaching by giving a discourse on a specific topic, typically to a large audience, focusing on delivering information directly to students.