If There Is Perfect Certainty, a Competitive Firm Will Necessarily

question 38

Multiple Choice

If there is perfect certainty, a competitive firm will necessarily

• A)seek to maximize its immediate profits rather than long-run returns because otherwise it will go broke.
• B)maximize the ratio of the present value of its sales to the present value of its costs.
• C)equalize its profits in all periods.
• D)equalize its sales in all periods.
• E)None of the above.

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Definitions:

Cooperation

The process of individuals or groups working together for a common purpose or benefit.

Conflict Management Style

The approach and techniques an individual or group uses to handle disagreements or disputes.

Intermediate Levels

Positions or stages that are between the initial and final stages in a process, system, or hierarchy.

Compromise

A conflict management style that combines intermediate levels of assertiveness and cooperation.