Which of the Following Statements Is TRUE for Both a Competitive

question 109

Multiple Choice

Which of the following statements is TRUE for both a competitive market and a single-price monopoly?

• A) The firm maximizes profit by producing the quantity at which marginal revenue equals marginal cost.
• B) The firm can make an economic profit in the long run.
• C) The price is set where the supply curve and demand curve intersect.
• D) The firm always produces at the lowest possible long-run average cost.

---

Definitions:

Primary Sector

The sector of an economy involving the extraction and harvesting of natural resources directly from the earth, such as agriculture, mining, and forestry.

Tertiary Sector

This term refers to the sector of an economy focused on services rather than the production of goods, including areas such as retail, entertainment, and financial services.

Secondary Sector

The part of the economy that includes industries involved in the processing, transformation, fabrication, or construction of materials and products from raw materials.

Rational-Legal

An authority system based on legal rules and regulations, and the rationality of law, often associated with modern bureaucracies.