Which of the Following Characteristics Is True for a Competitive

question 180

Multiple Choice

Which of the following characteristics is true for a competitive price searcher but not for a price taker?

• A) The firm earns zero profits in the long run.
• B) The firm has an incentive to operate efficiently.
• C) A reduction in market demand will lead to short-run losses.
• D) Price is above marginal cost in long-run equilibrium.

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Definitions:

Global Structures

The overarching patterns and systems that shape global relations, economies, and social dynamics across the world.

Symbolic Interactionism

A sociological perspective focusing on the role of symbols and language as core elements of all human interaction.

Functionalism

Functionalism is a sociological perspective that emphasizes the ways in which different parts of a society are structured to maintain its stability and functionality.

Conflict Theory

A sociological perspective that views social life as a competition, and focuses on the distribution of resources, power, and inequality.