In the Short Run, a Perfectly Competitive Profit Maximizing Firm

question 123

Multiple Choice

In the short run, a perfectly competitive profit maximizing firm that has not shut down:

• A) is operating on the downward-sloping portion of its AVC curve.
• B) is operating at the minimum of its AVC curve.
• C) is operating on the upward-sloping portion of its AVC curve.
• D) is not operating on its AVC curve.
• E) can be at any point on its AVC curve.