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Supporting users have an ad free experience! Which of the following statements is true for the perfectly competitive firm in the long run?The correct answer is b. The firm cannot affect the market price for its good. In a perfectly competitive market, a single firm cannot influence the market price.
What do perfectly competitive firms do in the long run?In the long run, perfectly competitive firms will react to profits by increasing production. They will respond to losses by reducing production or exiting the market.
Which of the following statements is correct regarding perfect competition?Perfect competition is a type of market where there are large number of buyers and sellers who deals in homogeneous product due to which no individual unit is able to influence the price of the product and the firms have to quote the price that prevails in the market.
Which of the following conditions is true for a perfectly competitive firm in long run equilibrium?Option b. is the correct answer. In economic equilibrium, aggregate demand of a commodity is equal to aggregate supply. In perfectly competitive industries, firms earn normal profit and each firm wants to maximize its profit by producing maximum level of output where marginal cost (MC) equals the marginal revenue (MR).
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