When Firms in a Perfectly Competitive Market Face the Same

question 76

Multiple Choice

When firms in a perfectly competitive market face the same costs, in the long run they must be operating

• A)under diseconomies of scale.
• B)with small, but positive, levels of profit.
• C)at their efficient scale.
• D)where price is equal to average fixed cost.

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Definitions:

Restrain Trade

Restrain Trade involves activities or agreements that limit competition or control prices within a specific industry, often regulated by antitrust laws.

Bundles

Packages or collections of items or services offered together, often at a reduced price.

Rule of Reason

A legal doctrine used in antitrust law stating that trade practices are only unlawful if they unreasonably restrain trade.

Competition

The activity or condition of competing against others for the same objective or for superiority in a field.