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:

Nonunion Grievance Processes

Procedures allowing employees not affiliated with a union to address complaints or disputes in the workplace.

Grievance Filing Rates

The frequency at which employees file formal complaints (grievances) against their employers, usually related to contract or work condition violations.

Past Practice

A term used in labor relations to refer to a customary practice that, over time, has become an accepted way of doing things despite not being formally written into a contract.

Arbitrators

Neutral third parties chosen to settle disputes outside of court, whose decisions are typically binding.