Which of the Following Is True of a Perfectly Competitive

question 57

Multiple Choice

Which of the following is true of a perfectly competitive market?

• A) If economic profits are earned then the price will fall over time.
• B) In long-run equilibrium P > MR = SRMC < SRATC = LRAC.
• C) A constant-cost industry exists when the entry of new firms has a significant effect on their cost curves.
• D) If the input prices rise the long-run supply curve is downward sloping.

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Definitions:

Libido

In psychoanalytic theory, a term describing the energy or drive behind human sexuality and desires, originally formulated by Sigmund Freud.

Psychodynamic Goal

A psychodynamic goal is related to therapies that seek to uncover and address the underlying psychological forces affecting an individual's behavior and emotions.

Existential Angst

A form of anxiety stemming from the fundamental uncertainties and inherent difficulties of human existence.

Object Relations Theory

A psychodynamic theory that focuses on the importance of internal relationships with others, formed during early development, in shaping the self and influencing social behavior.