I've been trying for awhile but I haven't figured out, so here's the problem.
3. Which one of the following statements is true under perfect competition?
A. Consumer surplus is maximized.
B. Each firm's marginal revenue curve is determined by the market price.
C. Each firm's demand curve is the market demand curve.
D. Firms choose output so that price equals marginal cost in the long run, but firms may choose to set price above marginal cost in the short run to maximize profits.
E. There is no producer surplus.
3. Which one of the following statements is true under perfect competition?
A. Consumer surplus is maximized.
B. Each firm's marginal revenue curve is determined by the market price.
C. Each firm's demand curve is the market demand curve.
D. Firms choose output so that price equals marginal cost in the long run, but firms may choose to set price above marginal cost in the short run to maximize profits.
E. There is no producer surplus.