Asked by
Jayson Davis
on Oct 12, 2024
Verified
Which statement is true?
A) The perfect competitor sets her price.
B) Perfect competitors sell below market price to attract new customers.
C) In the long run the perfect competitor produces at an output at which ATC is falling.
D) The perfect competitor makes zero economic profit in the long run.
Perfect Competitor
A theoretical concept in which a market structure has many small sellers, all producing homogeneous products with no control over market price.
Economic Profit
The difference between total revenue and total costs, including both explicit and implicit costs, representing additional gain over and above normative expectations.
ATC
Average Total Cost, which is calculated by dividing the total cost by the quantity of output produced.
- Explicate the elements of perfect competition and the maneuvers of organizations active in this setting.
- Assess the impact of operating with profits, losses, or at a break-even point on a firm in an ideally competitive marketplace.
Verified Answer
JE
Learning Objectives
- Explicate the elements of perfect competition and the maneuvers of organizations active in this setting.
- Assess the impact of operating with profits, losses, or at a break-even point on a firm in an ideally competitive marketplace.