Statement I: in the Long Run the Perfect Competitor Sells

question 307

Multiple Choice

Statement I: In the long run the perfect competitor sells at cost.
Statement II: In the long run some perfect competitors make an economic profit.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

Evaluate the effects of antitrust enforcement on business practices and market competition.

Understand the significance of the Sherman Antitrust Act and other key legislative acts in shaping antitrust policy.

Analyze the impact of antitrust laws on market structure and firm behavior.

Recognize the role of the Herfindahl index in assessing market concentration and its implications for antitrust policy.

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Definitions:

Need Hierarchy

A theory of motivation proposed by Abraham Maslow, suggesting that people are motivated by a hierarchy of needs starting from basic physical requirements up to higher needs like self-actualization.

Progression Hypothesis

The concept that suggests an individual's needs or motivations follow a specific order or progression, similar to Maslow's hierarchy of needs.

Empirical Hypothesis

A proposition that can be tested through observation and experiments to determine its validity.

Scientific Management

A theory of management that analyzes and synthesizes workflows, aiming to improve economic efficiency, especially labor productivity, by systematic study of work methods.