Other Things Being Equal,if a Perfectly Competitive Firm Is Forced

question 117

Multiple Choice

Other things being equal,if a perfectly competitive firm is forced to switch to a more expensive,nonpolluting production process:

• A) The average cost curve will shift downward.
• B) The profit-maximizing level of output will be increased.
• C) The marginal cost curve will shift downward.
• D) Total profits will decrease.

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Definitions:

Shareholder Vote

The right of shareholders to vote on corporate matters, typically exercised at shareholders' meetings.

Forced Transaction

A sale or trade that occurs under pressure, often lacking the free will or consent of one of the parties involved.

Dissolution

The official closure of an entity, such as a corporation or partnership, with legal processes to disband and distribute assets.

Court Order

A formal instruction or command issued by a court, requiring a person or entity to do or refrain from doing something.