In a Competitive Industry, Which of the Following Cannot Be

question 6

Multiple Choice

In a competitive industry, which of the following cannot be true for a firm in the long run?

• A)Price equals marginal cost.
• B)Profits are maximized.
• C)The firm takes market price as given.
• D)Economic profits equal zero.
• E)Price equals average variable cost.

---

Definitions:

Sequence Prepared

The order in which tasks or activities are organized and completed.

Sales Budget

A financial plan that estimates future sales volumes and revenues for a specific period, used for strategic planning and resource allocation.

Dollar Sales

The total monetary amount of sales within a specified period, not adjusted for returns or discounts.

Goods Sold

Refers to the total volume or number of products a company has sold to its customers within a specific period.