The Only Decision That a Perfectly Competitive Firm Makes Is

question 37

Multiple Choice

The only decision that a perfectly competitive firm makes is:

• A)what price to charge.
• B)what quantity to produce.
• C)how much to spend on advertisements.
• D)how much to price discriminate.
• E)how to differentiate its products from its rivals.

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Definitions:

Hourly Rate

The sum of money received for every hour worked.

Unit Price

The cost per single unit of an item or investment.

Percent Change

The measurement of the relative change of a quantity, expressed as a percentage, to denote increase or decrease from one period to another.

Share Price

The current price of a single share of a company's stock on the market.