In Perfectly Competitive Markets, If the Price Is _______

question 175

Multiple Choice

In perfectly competitive markets, if the price is _______ , the firm will _______ .

• A) greater than ATC; make an economic profit
• B) less than the minimum AVC; shut down
• C) greater than the minimum AVC but less than ATC; continue to produce and incur a loss.
• D) all of the above are true.

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Definitions:

Property Rights

The legal rights to use, control, and derive benefits from a property or resource.

Forests

Large areas covered predominantly with trees and undergrowth, serving as essential ecosystems for a variety of species.

Enforced

Imposed by authority or law to ensure compliance or adherence to certain standards or regulations.

Harvest Slowly

A principle or approach suggesting the gradual collection or utilization of resources to ensure sustainability and avoid depletion.