Which of the Following Is True for a Firm Operating

question 114

Multiple Choice

Which of the following is true for a firm operating under perfect competition, monopolistic competition, and monopoly?

• A) Firms earn positive economic profits in the long run.
• B) Firms earn zero economic profits in the long run.
• C) Profits are maximized when marginal cost equals marginal revenue.
• D) Price equals marginal cost.

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Definitions:

Racist Attitude

Prejudiced beliefs or discriminatory behaviors towards individuals based solely on their race or ethnicity.

Risky Shift

The tendency for a group decision to be riskier than the average decision made by the individual group members.

Riskier

Describes actions or situations that involve a greater likelihood of leading to harm or loss.

Group Decision

The process through which two or more individuals come to a conclusion or resolve an issue collaboratively.