Which Statement Is True

question 266

Multiple Choice

Which statement is true?

• A)The perfect competitor sets her price.
• B)Perfect competitors sell below market price to attract new customers.
• C)In the long run the perfect competitor produces at an output at which ATC is falling.
• D)The perfect competitor makes zero economic profit in the long run.

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Definitions:

Break-Even Point

The break-even point is the point at which total costs and total revenues are equal, meaning there is no net loss or gain.

Variable Costs

Costs that vary depending on the level of production or sales.

Fixed Costs

Expenses that remain constant regardless of production or sales volume, including rent, salaries, and insurance costs.

Total Cost

The complete amount of money required to purchase, produce, execute, or maintain something, including all related expenses and charges.