If a Perfectly Competitive Firm Is Producing in the Short

question 50

Multiple Choice

If a perfectly competitive firm is producing in the short run at an output where price is less than average total cost,the firm

• A)will shut down.
• B)is breaking even.
• C)is still making a positive economic profit.
• D)is incurring an economic loss but will continue to operate as long as price is above minimum average fixed cost.
• E)is incurring an economic loss but will continue to operate as long as price is above minimum average variable cost.

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Definitions:

Salt Excretion

The process by which organisms remove excess salt from their bodies, essential for maintaining homeostasis and osmotic balance.

Nitrogenous Wastes

are byproducts of protein and nucleic acid metabolism that organisms must excrete, including urea, ammonia, and uric acid.

Malpighian Tubules

Excretory tubes uniquely found in the digestive system of insects and arachnids, serving to remove waste products from the blood.

Major Nitrogenous Waste

The primary form of nitrogen excreted by organisms, which varies among species (urea in mammals, uric acid in birds and reptiles, and ammonia in aquatic organisms).