Characteristics of a Short-Run Perfectly Competitive Equilibrium Always Include

question 33

Multiple Choice

Characteristics of a short-run perfectly competitive equilibrium always include:

• A)zero profits.
• B)the condition that marginal cost is greater than average cost.
• C)the condition that homogeneous firms are producing the same level of output.
• D)the condition that sunk costs are zero.

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Definitions:

Sulfur Dioxide Emissions

Refers to the release of sulfur dioxide gas into the atmosphere, primarily from burning fossil fuels, which can cause environmental and health problems.

Excise Taxes

Taxes charged on the sale of specific goods and services, such as alcohol and tobacco, often used as a tool for discouraging their consumption.

Sales Taxes

Taxes levied on the sale of goods and services, normally calculated as a percentage of their price.

Marginal Social Benefit

The additional benefit to society as a whole from an increase in the consumption or production of one more unit of a good or service.