A Purely Competitive Firm Can Be Identified by the Fact

question 102

Multiple Choice

A purely competitive firm can be identified by the fact that

• A) there are other firms in the industry producing similar products.
• B) it is making only normal profits in the short run.
• C) its average revenue equals its marginal revenue.
• D) it experiences diminishing marginal returns.

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Definitions:

Human Capital

Human capital refers to the economic value of a worker's experience and skills, including education, training, intelligence, and health.

Accumulated Knowledge

The total body of information and understanding a person or society has gathered over time.

Productive Skills

The abilities and expertise that enable an individual to produce goods or deliver services effectively in a work setting.

Green Card

A document granting an individual the right to live and work permanently in the United States.