In the Short Run,a Firm in a Perfectly Competitive Market

question 37

Multiple Choice

In the short run,a firm in a perfectly competitive market

• A)can make an economic profit,incur an economic loss,or break even.
• B)always makes an economic profit.
• C)chooses the price that maximizes its economic profit.
• D)chooses the price that minimizes its marginal cost.
• E)shuts down if it incurs an economic loss.

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Definitions:

Sold

The completed sale of goods or services from one party to another, transferring ownership.

Probability

A mathematical measure indicating the likelihood or chance of a specific event occurring, ranging from 0 (impossible) to 1 (certain).

Quarter

A period of three months used in financial and business sectors for reporting, forecasting, and dividing the fiscal year.

Tails

The extreme ends of a distribution, representing outcomes that are far from the central peak of the distribution.