If There Is Perfect Certainty, a Competitive Firm Will Necessarily

question 38

Multiple Choice

If there is perfect certainty, a competitive firm will necessarily

• A)seek to maximize its immediate profits rather than long-run returns because otherwise it will go broke.
• B)maximize the ratio of the present value of its sales to the present value of its costs.
• C)equalize its profits in all periods.
• D)equalize its sales in all periods.
• E)None of the above.

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Definitions:

General Adaptation System

A model describing the body's short-term and long-term reactions to stress, formulated by Hans Selye.

Myocardial Infarction

A medical term for a heart attack, resulting from the blockage of blood flow to a part of the heart, causing heart cells to die due to lack of oxygen.

Resistance Stage

A phase of the general adaptation syndrome in which the body tries to adapt to a stressor and maintain homeostasis, following the initial alarm reaction stage.

General Adaptation Syndrome

A three-stage response (alarm, resistance, exhaustion) that describes the body's short- and long-term reactions to stress.