Which of the Following Is Consistent with a Competitive Market

question 95

Multiple Choice

Which of the following is consistent with a competitive market?

• A) A small number of firms
• B) Exit of small firms when profits are high for large firms
• C) Zero economic profit in the long run
• D) Marginal revenue lower than price for each firm

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Definitions:

Intertidal Zone

The area along coastlines that is exposed to air at low tide and submerged at high tide, with a unique set of organisms adapted to its conditions.

Niches

The role or position that an organism or population occupies within an ecosystem, encompassing everything that affects its survival and reproduction.

Parasitism

A relationship between two organisms where one benefits at the expense of the other, often without killing it outright.

Commensalism

A type of symbiotic relationship where one organism benefits while the other is neither helped nor harmed.