Assume That at the Current Market Price,a Perfectly Competitive Firm's

question 46

Multiple Choice

Assume that at the current market price,a perfectly competitive firm's profit-maximizing level of output yields total revenues that are just equal to total costs.Which of the following statements applies to this firm?

• A)The firm should shut down right now.
• B)The firm should continue to operate in the short run to minimize losses, but shut down if things don't improve over the long run.
• C)The firm is earning zero economic profit and should continue to operate.
• D)The firm should increase its explicit costs to reduce its tax burden.

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