Which of the Following Is True for a Firm Operating

question 80

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 maximised when marginal cost equals marginal revenue.
• D)Price equals marginal cost.
• E)Firms have to advertise.

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Definitions:

Collateral

Assets pledged as security for the repayment of a loan, forfeitable in the event of a default.

Contractual Defenses

Legal arguments that can be used to challenge the enforceability of a contract, such as incapacity, duress, or fraud.

Surety Relationships

A legal arrangement where a third party (the surety) agrees to take responsibility for the debt or obligation of a borrower if the borrower defaults.

Modification

An alteration or change to an existing agreement or contract.