Which of the Following Statements About a Competitive Firm Is

question 149

Multiple Choice

Which of the following statements about a competitive firm is correct?

• A) To maximize profits, a competitive firm should produce the output level at which total revenue is greatest.
• B) In long-run equilibrium, a competitive firm will produce at the point of minimum average costs.
• C) A competitive firm will produce in the short run so long as total receipts are sufficient to cover total fixed costs.
• D) A competitive firm will close down in the short run whenever price is less than the minimum attainable average total cost.

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Definitions:

Population

The complete set of individuals, items, or data from which a statistical sample is drawn for analysis.

Occurrences

Instances or events of something happening or being present.

Characteristics

Distinctive qualities or features that identify and differentiate individuals, groups, or things.

Descriptive Statistics

Statistical methods that summarize or describe the main features of a dataset, including measures like mean, median, mode, and standard deviation.