In the Short Run,a Competitive Firm May Choose to Operate

question 164

Multiple Choice

In the short run,a competitive firm may choose to operate at a loss

• A) to ensure that other firms make a loss as well.
• B) only if those losses are economic losses.
• C) to gain market power in the future.
• D) only if those losses are accounting losses.
• E) to recover a portion of its fixed costs.