The Only Decision That a Perfectly Competitive Firm Makes Is

question 37

Multiple Choice

The only decision that a perfectly competitive firm makes is:

• A)what price to charge.
• B)what quantity to produce.
• C)how much to spend on advertisements.
• D)how much to price discriminate.
• E)how to differentiate its products from its rivals.

---

Definitions:

Business Debts

Obligations that a business incurs as a result of operating activities, including loans, accounts payable, and any other form of borrowed money.

No Personal Liability

A legal principle that protects individual actors within a corporation or legal entity from bearing personal financial responsibility for the entity's liabilities.

Agency Relationships

A legal arrangement where one party, the agent, acts on behalf of another party, the principal, in transactions with third parties.

Management Rights

Rights retained by employers, allowing them to manage, direct, and control their business operations and workforce.