In the Short Run, a Perfectly Competitive Firm

question 322

Multiple Choice

In the short run, a perfectly competitive firm

• A) can either make an economic profit, incur an economic loss, or make zero economic profit.
• B) never incurs an economic loss larger than its average fixed costs.
• C) produces at any price.
• D) always makes an economic profit.

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Definitions:

Acquainted

Having knowledge or experience of something, often referring to a person's familiarity with a subject, area, or person.

Diverse

Showing a great deal of variety; very different.

Conflict

A situation where interests, needs, goals or values of involved parties interfere with one another, often leading to disputes.