Which of the Following Is a Characteristic Shared by a Perfectly

question 96

Multiple Choice

Which of the following is a characteristic shared by a perfectly competitive firm and a monopoly?

• A)Each must lower its price to sell more output.
• B)Each sets a price for its product that will maximize its revenue.
• C)Each maximizes profits by producing a quantity for which marginal revenue equals marginal cost.
• D)Each maximizes profits by producing a quantity for which price equals marginal cost.

---

Definitions:

Hierarchy

A system of organizing or classifying people, entities, or concepts based on levels of importance, authority, or status.

Bureaucracy

An organizational structure characterized by hierarchical authority, a clear division of labor, explicit rules, and impersonality in personnel matters.

Authority

The legitimate or socially approved use of power, often associated with roles or positions held by individuals or institutions.

Emotional State

The internal condition of feeling or mood of an individual, which can influence perceptions, behaviors, and attitudes.