Which of the Following Is True in Both Perfect Competition

question 108

Multiple Choice

Which of the following is true in both perfect competition and monopoly?

• A)Firms produce a differentiated product.
• B)Firms cannot earn economic profit in the long run.
• C)Individual firms have no ability to control the price of their output but must accept the market price.
• D)Firms go out of business in the long run if total revenue cannot cover total cost.
• E)Firms can earn economic profit in the long run.

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Definitions:

Pepsinogen

Pepsinogen is an inactive precursor of pepsin, a digestive enzyme produced in the stomach that is activated by stomach acid to break down proteins in food.

Hydrochloric Acid

A strong, corrosive acid consisting of hydrogen and chlorine, notably present in gastric juice.

Amino Acids

The building blocks of proteins, consisting of a basic amino group, an acidic carboxyl group, and a unique side chain, crucial for numerous bodily functions.

Amino Acids

Organic compounds that combine to form proteins, serving as the building blocks of life and playing a critical role in various biological processes.