When Firms Are Neither Entering nor Exiting a Perfectly Competitive

question 429

Multiple Choice

When firms are neither entering nor exiting a perfectly competitive market,

• A)total revenue must equal total variable cost for each firm.
• B)economic profits must be zero.
• C)price must equal average variable cost for each firm.
• D)Both a and c are correct.

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Definitions:

Characteristic Symbol

A symbol used in engineering drawings to represent the type of geometric characteristic that is being controlled by a geometric tolerance.

Symmetry

A characteristic where an object or design is evenly proportioned and balanced, such that it can be divided into matching halves by one or more axes.

Straightness

A condition where an element or line follows a true, unbending course, often used to describe the accuracy of a manufactured part.

Maximum Material Condition

A feature of size symbol that denotes the limit of size for an external or internal feature of size, considering the maximum amount of material for the part to meet specifications.