If a Perfectly Competitive Firm Is Producing in the Short

question 50

Multiple Choice

If a perfectly competitive firm is producing in the short run at an output where price is less than average total cost,the firm

• A)will shut down.
• B)is breaking even.
• C)is still making a positive economic profit.
• D)is incurring an economic loss but will continue to operate as long as price is above minimum average fixed cost.
• E)is incurring an economic loss but will continue to operate as long as price is above minimum average variable cost.

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Definitions:

Retrieval Failure

Not remembering something one is certain of knowing.

Retroactive Interference

A phenomenon where newly acquired information interferes with the retrieval of older information.

Proactive Interference

A phenomenon where older memories interfere with the recall of newer memories, often affecting the learning process.

Cue-dependent Forgetting

A phenomenon where information is not remembered unless the context present at encoding is also present at recall.