If a Perfectly Competitive Firm Operates in the Short Run

question 42

Multiple Choice

If a perfectly competitive firm operates in the short run and expands in the long run, then the firm's short run condition is

• A) TR > TC.
• B) TR >TVC and TR < TC.
• C) TR < TVC.
• D) TR < TFC.

---

Definitions:

Peak Efficiency

Refers to the highest level of operational productivity or performance a company or economy can achieve under ideal conditions.

ATC Curve

Average Total Cost Curve, a graphical representation in economics that shows the average total cost of producing different quantities of a good or service.

Variable Cost Curve

A graphical representation showing how total variable costs change with changes in output level.

Total Cost Curve

In economics, a graphical representation that shows how total cost changes with changes in the quantity of output produced.