Which of the Following Is True of a Perfectly Competitive

question 15

Multiple Choice

Which of the following is true of a perfectly competitive firm in long-run equilibrium?

• A)The market supply curve is horizontal.
• B)The market demand curve is horizontal.
• C)It will minimize its average total cost.
• D)It will charge a price above its marginal cost.
• E)Marginal cost is minimized.

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Definitions:

Internal Consistency

A measure of the reliability of a psychological test or survey, assessing if all items evaluate the same characteristic and produce similar scores.

Convergent Validity

The construct validity of a measure is assessed by examining the extent to which scores on the measure are related to scores on other measures of the same construct or similar constructs.

Correlation Coefficient

A statistical measure that calculates the strength and direction of the relationship between two variables.

True Score

An individual’s actual score on a variable being measured, as opposed to the score the individual obtained on the measure itself.