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Basic Question 0 of 4
Perfectly competitive firms ______
B. maximize total sales.
C. minimize total costs.
D. maximize profits.
A. maximize market share.
B. maximize total sales.
C. minimize total costs.
D. maximize profits.
User Contributed Comments 6
| User | Comment |
|---|---|
| DannyZhou | So do all other types of firms? |
| EMerkert | Monopolistic firms would first seek to maximize market share by undercutting competitors, once this is acheived then they can maximize profits by raising prices without much competition |
| udhay | Why not B,In perfect competition firms can make max profit only thru max sales |
| Thescholar | Maximising sales may lead to increased costs which may therefore not maximise profit |
| vatsal92 | Profit is the sole motive of perfect competition firms. |
| fzhou | MR = MC = ATC_min is profit maximizing rule. |
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Learning Outcome Statements
explain the relationships between the values of a callable or putable bond, the underlying option-free (straight) bond, and the embedded option;
describe how the arbitrage-free framework can be used to value a bond with embedded options;
CFA® 2025 Level II Curriculum, Volume 4, Module 28.