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Basic Question 4 of 13
Which of the following is a competitive business firm able to control?
B. The amount of output it produces
C. The amount of economic profit it earns in the long run
A. The demand for its product
B. The amount of output it produces
C. The amount of economic profit it earns in the long run
User Contributed Comments 3
| User | Comment |
|---|---|
| MFTIOA | The amount of economic profit it earns in the long run = 0 |
| magicchip | Amount of output is the only thing a perfectly competitive company is able to control. |
| Nyoiks | since a perfectly competitive firm is a price taker, it cannot control its price.it can only control its output at a given price level, wea P<ATC/equal to ATC |
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Learning Outcome Statements
determine and interpret break even and shutdown points of production, as well as how economies and diseconomies of scale affect costs under perfect and imperfect competition
CFA® 2024 Level I Curriculum, Volume 1, Module 1.