Which Statement Is TRUE of Firms in Both Perfect Competition

question 237

Multiple Choice

Which statement is TRUE of firms in both perfect competition and monopolistic competition?

• A)The long-run price is equal to marginal revenue,marginal cost,and average total cost.
• B)Long-run economic profits are equal to zero.
• C)The long-run level of output is at the point where average total cost is minimized.
• D)Price is equal to marginal cost,ensuring that the efficient level of output is produced.

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Definitions:

Contingencies

In the context of behavior, it refers to the dependence of certain outcomes on specific conditions or actions.

Negative Reinforcement

A behavioral principle where the removal of an unpleasant stimulus strengthens a behavior or increases the likelihood of its repetition.

Punishment

A method used to reduce or eliminate undesired behaviors by applying an unpleasant stimulus or removing a pleasant one in response to the behavior.

Withdrawal of Attention

The process by which individuals stop focusing their attention on a particular stimulus or task, leading to a decrease in the perceived importance or relevance of the stimulus.