A Firm ________ in the Short-Run Has an Incentive to Expand

question 64

Multiple Choice

A firm ________ in the short-run has an incentive to expand its long-run scale of operation.

• A) breaking even
• B) earning positive profits
• C) that shuts down
• D) making a loss

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Definitions:

Wage

A wage is the amount of money paid to an employee by an employer in exchange for work performed, typically expressed on an hourly, daily, or piecework basis.

Monopsonistic Cartel

A market condition where there is only one buyer for a product or service, giving them significant power over sellers.

Antitrust Laws

Rules and regulations prohibiting actions that restrain, or are likely to restrain, competition.

Major League Baseball

A professional baseball organization consisting of teams in the United States and Canada, representing the highest level of professional baseball.