Which of the Following Does Not Characterize a Perfectly Competitive

question 69

Multiple Choice

Which of the following does not characterize a perfectly competitive firm that has shut down in the short run?

• A)total revenue equals zero
• B)variable costs equal zero
• C)the firm suffers a loss
• D)fixed cost is positive
• E)fixed cost is zero

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Definitions:

Promoters

Individuals or companies that are involved in the planning and establishment of a company, or those who actively support or recommend something.

Stock Dividend

A distribution of additional shares to shareholders at no extra cost, based on the number of shares they already own.

Corporation's Assets

Resources owned by a corporation that have economic value and can contribute to the company's future income and benefits.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting liabilities, representing ownership interest held by shareholders.