Which of the Following Statements Is Correct

question 148

Multiple Choice

Which of the following statements is correct?

• A)In the long run, both perfectly competitive firms and monopolistically competitive firms operate with excess capacity.
• B)A firm operates with excess capacity when, in the long run, its level of output is below the efficient scale.
• C)For any firm, efficient scale is the level of output at which the average-total-cost curve is tangent to the demand curve.
• D)All of the above are correct.

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Definitions:

Mnemonics

Memory aids, especially those techniques that use vivid imagery and organizational devices.

Hierarchies

Systems of organization where entities are ranked above one another based on status or authority.

Iconic Memory

A component of the visual memory system which is a brief, transient visual representation of a scene.

Sensory Memory

Sensory memory is the shortest-term element of memory which allows individuals to retain impressions of sensory information after the original stimulus has ceased.