Which of the Following Is True Under Perfect Competition

question 18

Multiple Choice

Which of the following is true under perfect competition?

• A)profits are always positive.
• B)P > MC.
• C)P = MR.
• D)all of the choices are true for perfect competition.

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Definitions:

Good Faith

A principle that emphasizes honesty, fairness, and integrity in the fulfillment of contractual obligations or in negotiations.

Reasonable Commercial Standards

A legal concept referring to the standard practices and methods used by reasonably prudent and competent parties in a particular industry.

Honesty

The quality of being truthful and free from deceit or fraud.

Holder In Due Course

A legal term for a party that has acquired a negotiable instrument in good faith and for value, and thus has certain protections against defects in title and prior claims.