A Perfectly Competitive Firm Can

question 272

Multiple Choice

A perfectly competitive firm can

• A) sell all of its output at the prevailing market price.
• B) set a higher price to customers who are willing to pay more.
• C) raise its price in order to increase its total revenue.
• D) sell additional output only by lowering its price.
• E) usually not sell all the output it produces, but still "over-produces" because there are some periods when it can sell the extra output at very profitable prices.

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Definitions:

Attention

The cognitive process of selectively concentrating on one aspect of the environment while ignoring other things.

Selectively

The act of choosing specific items or data while ignoring others based on certain criteria.

Consciousness

The state of being aware of and able to think about one's own existence, sensations, thoughts, surroundings, and experiences.

Short-term Memory

A capacity for holding a small amount of information in mind in an active, readily available state for a short period of time.