When Firms in a Perfectly Competitive Market Face the Same

question 99

Multiple Choice

When firms in a perfectly competitive market face the same costs, in the long-run they must be operating:

• A)under economies of scale
• B)at their efficient scale
• C)with marginal profitability
• D)under all of the above conditions

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Definitions:

Assets

Resources owned or controlled by a business or an individual that are expected to produce future economic value.

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits.

Fees Earned

Income earned from providing services before receiving payment.

Rent Revenue

Income earned from leasing out property or space to tenants.