In the Short Run, a Profit-Maximizing Firm in a Price-Taker

question 105

Multiple Choice

In the short run, a profit-maximizing firm in a price-taker market will definitely stop production if

• A) economic profit is zero.
• B) price falls below average total cost.
• C) price is less than average variable cost.
• D) it cannot completely cover its fixed costs.

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Definitions:

Nitrogen

A chemical element with symbol N and atomic number 7, essential for all living organisms and a major component of amino acids, proteins, and nucleic acids.

Molecular Ion

An ion formed by the removal or addition of an electron to a molecule during mass spectrometry.

Basic

Refers to substances that can accept protons or donate electrons, characterized by a high pH value when dissolved in water.

Amines

Organic compounds and functional groups that contain a basic nitrogen atom with a lone pair, typically derived from ammonia by replacing one or more hydrogen atoms with hydrocarbon groups.