In the Long Run, Each Firm in a Perfectly Competitive

question 158

Multiple Choice

In the long run, each firm in a perfectly competitive industry will:

• A) earn only enough to cover the opportunity costs of the resources used in production.
• B) produce where MR is greater than MC.
• C) differentiate its goods.
• D) increase its price.

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Definitions:

Quantity Demanded

The entire quantity of a product or service that buyers are prepared and can afford to buy at a specific price.

Peanut Butter

A spread made from ground, dry-roasted peanuts, often sweetened or salted.

Market Affect

The influence or impact that market dynamics, including changes in supply and demand, have on prices, production, and consumption.

Cycling Benefits

The advantages associated with bicycling, including improved health, reduced traffic congestion, and lower environmental impact.