Asked by
Francisco Castillo
on Oct 12, 2024
Verified
Which statement is true?
A) The perfect competitor generally makes a profit in the long run.
B) There are many firms in a perfectly competitive industry.
C) A perfect competitor will sell below market price to get a larger market share.
D) A perfect competitor never makes a profit.
Market Price
The present cost at which a service or asset is available for purchase or sale.
Perfect Competitor
A theoretical market structure where many buyers and sellers exchange identical products, and no single entity can influence the market price.
Long Run
A period in economics during which all factors of production and costs are variable, allowing for the full adjustment to changes.
- Understand the concept of perfect competition and its characteristics.
- Delve into the operational frameworks of companies within a perfectly competitive market, including strategies for maximizing profits, mitigating losses, and realizing long-run equilibrium.
Verified Answer
RK
Learning Objectives
- Understand the concept of perfect competition and its characteristics.
- Delve into the operational frameworks of companies within a perfectly competitive market, including strategies for maximizing profits, mitigating losses, and realizing long-run equilibrium.