Which of the Following Does Not Hold True for a Perfectly

question 128

Multiple Choice

Which of the following does not hold true for a perfectly competitive firm in long-run equilibrium?

• A)Its economic profit will be zero.
• B)It will minimize average total cost.
• C)It will charge a price equal to marginal cost.
• D)Marginal cost will be minimized.

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Definitions:

Interest Rate

The percentage at which interest is charged or paid on borrowed or saved money, often influencing economic activity.

Time Preference

An individual's preference for receiving goods or services sooner rather than later, reflecting the value of future goods as compared to present goods.

Money Rate

Typically refers to the interest rate, which is the cost of borrowing money, or the return on investing money, expressed as a percentage.

Real Rate

The interest rate adjusted for inflation, reflecting the real cost of funds to the borrower and the real yield to the lender.