In a Perfectly Competitive Market

question 154

Multiple Choice

In a perfectly competitive market,

• A)no firm can earn an economic profit
• B)it is possible for each firm to earn an economic profit in the short run
• C)firms determine the market price and consumers determine the market quantity
• D)consumers determine the market price,and firms decide how much to produce at that price
• E)the market demand curve is a horizontal line at the market price

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Definitions:

Fourth Branch

A term sometimes used to refer to groups outside the three branches of government (executive, legislative, judicial) that influence policy, such as the media or independent regulatory agencies.

Democratic Society

A society in which the principles of democracy, such as equality, freedom, and justice, are practiced and upheld.

Population Informed

A state where the general public or a specific group of people are educated or knowledgeable about a particular topic.

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A major political scandal in the United States in the 1970s involving a break-in at the Democratic National Committee headquarters and the Nixon administration's attempted cover-up.