Which of the Following Statements Best Describes the Price, Output

question 110

Multiple Choice

Which of the following statements best describes the price, output, and profit conditions of competitive price-searcher markets?

• A) Price will equal marginal cost at the profit-maximizing level of output; profits will be positive in the long-run.
• B) Price will always equal average variable cost in the short run and either profits or losses may result in the long run.
• C) Marginal revenue will equal marginal cost at the short run, profit-maximizing level of output; in the long run, economic profit will be zero.
• D) Marginal revenue will equal average total cost in the short run; long-run economic profits will be zero.

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Definitions:

Vested Interests

Parties with a strong existing interest in maintaining or influencing a particular condition or set of policies for personal or economic gain.

Patriarchy

In this system, males are the primary holders of power, leading in government, moral leadership, enjoying societal benefits, and owning property.

Bureaucratic Organization

A form of organization structured hierarchically, governed by formal rules and regulations, and characterized by specialized roles and impartiality of its members.

Charismatic Personalities

Individuals who possess a natural ability to attract, influence, and inspire others through their charm, communication, and leadership qualities.