Which of the Following Is ALWAYS True for a Perfectly

question 59

Multiple Choice

Which of the following is ALWAYS true for a perfectly competitive firm?

• A) P = MR
• B) P = ATC
• C) MR = ATC
• D) P = AVC

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Definitions:

Industry

The sector of economy characterized by the production and manufacturing of goods or provision of services.

Cost-Benefit Analysis

An analytical process to compare the costs and benefits of decisions, projects, or policies.

Prevention

Activities or measures taken to avoid or minimize unwanted outcomes or accidents before they happen.

Reduction

The process of decreasing or lessening in size, quantity, or magnitude.