Suppose a Perfectly Competitive Firm Is Experiencing Zero Economic Profits

question 114

Multiple Choice

Suppose a perfectly competitive firm is experiencing zero economic profits.In an effort to increase profits,the firm decides to initiate an advertising campaign for its product.The most likely short-run result of this campaign,ceteris paribus,would be

• A)Economic losses for the firm.
• B)The ability to sell more at the existing market price.
• C)The ability to sell more at a lower price.

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