Which of the Following Is True for Both Perfect Competition

question 20

Multiple Choice

Which of the following is true for 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 usually earn economic profit in the long run.

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Definitions:

Oedipal Complex

A Freudian theory in psychoanalytic psychology that a child, typically around the age of three to five, experiences a desire for the opposite-sex parent and hostility toward the same-sex parent.

Phallic Complex

A Freudian theory phase of childhood development characterized by attachment to the parent of the opposite sex and jealousy toward the same-sex parent.

Defence Mechanisms

Psychological strategies used unconsciously to protect oneself from anxiety and to cope with reality.

Fixation

In psychology, refers to a persistent focus of the id’s pleasure-seeking energies at an earlier stage of psychosexual development.