If P = MC and MC > ATC, Then a Perfectly

question 9

Multiple Choice

If P = MC and MC > ATC, then a perfectly competitive firm will earn ________ profits.

• A) positive
• B) zero
• C) negative
• D) break-even

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Definitions:

Cross-Border Merger

A transaction where companies from different countries merge to create a new entity or one absorbs the other, expanding their global footprint and operational reach.

Joint Venture

A business agreement between two or more parties to jointly undertake a specific project or business activity, sharing profits, losses, and control.

Ethnocentrism

The belief in the superiority of one's own cultural group, often accompanied by a disregard for other cultures.

Polycentric Attitude

An approach that recognizes and values the diversity and difference of various cultures and practices in international business.