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.

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Definitions:

Procedural Unconscionability

A legal principle that occurs when the terms of a contract or the manner in which it was negotiated are so unfair to one party that they are void of meaningful choice.

Substantive Unconscionability

A condition where a contract or a specific contract term is so unjust or overwhelmingly one-sided in favor of the party who has the superior bargaining power.

Contract Language

The specific phrasing and terminology used in contracts to clearly define rights, responsibilities, obligations, and other agreements between parties.

Usury Statute

Laws that set maximum interest rates that can be charged on loans to prevent predatory lending practices.