Which Statement Is True About the Perfect Competitor

question 139

Multiple Choice

Which statement is true about the perfect competitor?

• A)Firms operate at peak efficiency in the short run.
• B)Economic profits are greater than accounting profits.
• C)Firms that survive must make a profit in the long run.
• D)The demand curve is perfectly elastic for each firm.

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Definitions:

Coupon Rate

Interest rate on a bond paid each year, represented as a percentage of its face value.

Yield

The income return on an investment, such as the interest or dividends received, expressed as an annual percentage of the investment's cost.

Annual Coupon Bonds

Bonds that pay interest to the holder on an annual basis, where the interest rate is specified as a percentage of the bond's face value.