Which of the Following Is a Characteristic of a Firm

question 57

Multiple Choice

Which of the following is a characteristic of a firm in a perfectly competitive market?

• A)The firm cannot make a profit in the short run because it is too small a part of the total market.
• B)The firm can make a profit in the long run but not in the short run.
• C)The firm can sell as much as it wants without having to lower its price.
• D)The firm must lower its price in order to increase quantity demanded.

---

Definitions:

Low Tolerance

A limited capacity to accept or endure differences, challenges, or adverse conditions, which can impact personal interactions and decision-making.

Cannibalize

In business, refers to a situation where a company's new product or service takes away sales from its existing offerings.

Highly Innovative

Refers to organizations or individuals that exhibit a strong capacity for creativity, leading to groundbreaking ideas and products.

Mission Statements

Formal summaries of the aims and values of a company, organization, or individual, guiding its decision-making and path forward.