Which of the Following Is a Reason Why Individual Firms

question 99

Multiple Choice

Which of the following is a reason why individual firms under pure competition would not find it gainful to advertise their product?

• A) Firms produce a homogeneous product.
• B) The quantity of the product demanded is very large.
• C) The market demand curve cannot be increased.
• D) Firms do not make long-run profits.

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Definitions:

Evaluates

Evaluates involves making judgments about the value, quality, outcome, or significance of something or someone based on evidence and criteria.

Cognitive-Social Theory

A theoretical perspective that emphasizes the role of cognitive processes in understanding social behavior.

Humanistic Theory

An approach in psychology that emphasizes empathy and stresses the good in human behavior.

Psychodynamic Theory

A theory in psychology which asserts that psychological processes and behaviors stem from the interaction of dynamic unconscious and conscious factors.