Which of the Following Is True for a Firm Operating

question 73

Multiple Choice

Which of the following is true for a firm operating under perfect competition, monopolistic competition and monopoly?

• A) Firms earn positive economic profits in the long run.
• B) Firms earn zero economic profits in the long run.
• C) Profits are maximised when marginal cost equals marginal revenue.
• D) Price equals marginal cost.

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Definitions:

Voluntary Movements

Actions initiated and controlled by an individual's conscious mind, involving the mobilization of muscle groups to perform deliberate actions.

Cerebellum

A part of the brain located at the back and beneath the brainstem, responsible for coordinating voluntary movements and balance.

Frontal Lobes

Regions of the brain involved in decision making, problem-solving, control of purposeful behaviors, consciousness, and emotions.

Personality

The blend of traits and qualities that make up a person's unique personality, shaping their actions, thoughts, and feelings.