Which Statement Is True

question 225

Multiple Choice

Which statement is true?

• A)The perfect competitor has some control over price.
• B)The perfect competitor produces at peak efficiency in the long run.
• C)The perfect competitor makes a profit in the long run.
• D)None of the statements are true.

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Definitions:

Consumer Protection Act

A law designed to safeguard consumers from unfair, deceptive, or predatory business practices and to ensure fair trade competition.

TED Spread

The difference between the interest rates on short-term US government debt and interbank loans, indicating credit risk in the general economy.

LIBOR

The London Interbank Offered Rate, representing the interest rate banks charge each other for short-term loans.

Treasury-Bill Rate

The yield or interest rate on U.S. government short-term debt instruments, such as treasury bills, which are considered among the safest investments.