In the Long Run,perfectly Competitive Firms Will Exit the Market

question 184

Multiple Choice

In the long run,perfectly competitive firms will exit the market if the price is

• A) higher than average variable cost.
• B) equal to average total cost.
• C) less than average total cost.
• D) equal to average fixed cost.
• E) equal to marginal revenue.

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Definitions:

Operational Plan

A plan that identifies short-term activities to implement strategic plans.

Functional Plan

A detailed, department-specific plan that outlines the objectives, strategies, and actions for achieving functional goals.

Objective Advantage

A definite, measurable benefit that one option or situation has over others, based on factual evidence.

Strategic Thinking

The ability to analyze the present state of an organization, envision a desired future, and plan the necessary steps to achieve this future state.