Which of the Following Statements Is TRUE

question 82

Multiple Choice

Which of the following statements is TRUE?
I. A free market minimizes the total costs of producing output.
II. In a free market, P = MC₁ = MC₂ = . . . MC_N.
III. Every firm faces the same price in a competitive market.

• A) I and II only
• B) III only
• C) I and III only
• D) I, II, and III

---

Definitions:

Reactance

A psychological response where an individual feels resistant or defensive when they perceive their freedom of choice is being restricted.

Directive Approach

A therapy style where the therapist takes an active role in guiding the client towards solutions.

Sense of Freedom

A subjective feeling of liberation, autonomy, or the ability to act and make decisions without external constraints.

Unintentional Disclosure

An accidental or inadvertent sharing of confidential information without consent or authorization.