Which of the Following Is True for Both Perfect Competition

question 147

Multiple Choice

Which of the following is true for both perfect competition and monopoly?

• A)Firms produce a differentiated product.
• B)Firms cannot earn economic profit in the long run.
• C)Individual firms have no ability to control the price of their output and must accept the market price.
• D)Firms go out of business in the long run if total revenue cannot cover total cost.
• E)Firms usually earn economic profit in the long run.

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Definitions:

Promotional Strategy

A marketing approach aimed at communicating the value of a product or service to customers, intending to increase sales.

Television Advertising

The process of promoting products, services, or ideas through commercials aired on television channels.

Promotional Mix

The combination of marketing tools used to effectively communicate with the target audience and promote a product or service.

Personal Selling

A direct face-to-face marketing approach where sales personnel interact with potential buyers to explain or demonstrate the features of a product or service.