If a Perfectly Competitive Firm Operates in the Short Run

question 221

Multiple Choice

If a perfectly competitive firm operates in the short run but exits the industry 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:

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated as the beginning inventory plus purchases minus the cost of goods sold.