In the Short Run, a Perfectly Competitive Firm

question 371

Multiple Choice

In the short run, a perfectly competitive firm

• A) cannot shut down.
• B) must make zero economic profit.
• C) can make an economic profit, incur an economic loss, or make zero economic profit.
• D) will not incur an economic loss if it shuts down.

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Definitions:

Hospital Insurance

A type of insurance designed to cover medical and surgical expenses incurred by the insured within a hospital setting.

OASDI

Old-Age, Survivors, and Disability Insurance, a comprehensive federal benefits program that provides retirement, disability, and survivors benefits.

Hospital Insurance

Coverage that pays for hospital expenses incurred by the insured due to illness or injury.

OASDI

Old-Age, Survivors, and Disability Insurance, a comprehensive federal benefits program that provides benefits to retirees and disabled people.