In a Perfectly Competitive Market,the Type of Decision a Firm

question 11

Multiple Choice

In a perfectly competitive market,the type of decision a firm has to make is different in the short run than in the long run.Which of the following is an example of a perfectly competitive firm's short-run decision?

• A) the profit-maximizing level of output
• B) how much to spend on advertising and sales promotion
• C) what price to charge buyers for the product
• D) whether or not to enter or exit an industry
• E) whether or not to change its plant size

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Definitions:

Course Of Action

Refers to a plan or strategy intended to accomplish a specific goal.

Allocation Of Resources

The process of distributing available resources among various projects or business units in order to maximize efficiency and achieve strategic goals.

Uncertainty

The state of being unsure or having doubts about outcomes or consequences, often making decision-making complex.

Limited Information

Situations where the data or knowledge available is insufficient or incomplete.