Which Is True for a Purely Competitive Firm in Short-Run

question 33

Multiple Choice

Which is true for a purely competitive firm in short-run equilibrium?

• A) The firm is making only normal profits.
• B) The firm's marginal cost is greater than its marginal revenue.
• C) The firm's marginal revenue is equal to its marginal cost.
• D) A decrease in output would lead to a rise in profits.

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Definitions:

Cooperativeness

A personality trait that reflects how much a person is willing to work together with others towards common goals or interests.

Neuroticism

A personality trait characterized by emotional instability, anxiety, moodiness, irritability, and vulnerability to stress.

Decrease

A reduction in size, quantity, or intensity of something.

College

An institution of higher education offering undergraduate programs, typically leading to associate or bachelor's degrees.