Which of the Following Statements About a Firm in a Perfectly

question 47

Multiple Choice

Which of the following statements about a firm in a perfectly competitive industry is true?

• A)The firm can improve its competitive position and sell more output by advertising its product.
• B)The firm maximizes its profit by producing where P = ATC.
• C)The firm maximizes its profit by producing where P = AVC.
• D)The firm will not produce at all if P < ATC.
• E)The firm will not produce at all if P < the minimum of AVC.

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Definitions:

Contextual Performance

The aspects of an individual’s behavior that contribute to the organizational or social aspects of the job, beyond the technical requirements.

Horns Error

A horns error occurs when the manager downgrades other aspects of an employee’s performance because of a single performance dimension.

Establishment Stage

The phase in a business or career development during which a foundation is built and stabilized, leading towards growth.

Horns Error

A bias in performance appraisals where a person is judged based on a single negative trait, impacting the overall assessment negatively.