In the Short Run, a Perfectly Competitive fiRm Is Minimizing

question 8

Multiple Choice

In the short run, a perfectly competitive firm is minimizing losses at an output of 250 units. If the market price is £5 and the average cost is £8 per unit, what is the firm's total loss?

• A) £750
• B) £2000
• C) £1250
• D) £400

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Definitions:

George W. Bush

Served as the United States' 43rd President from 2001 to 2009, notable for his leadership during the 9/11 terrorist attacks and for starting the war in Iraq.

Tax Cuts

Governmental reductions in the rate of taxation, aimed at stimulating economic growth or achieving other fiscal policy objectives.

Jeb Bush

An American politician and member of the Bush family who served as the Governor of Florida and was a candidate for the Republican presidential nomination.

2000 Presidential Election

A highly contested election in the United States, ultimately decided by the Supreme Court, resulting in George W. Bush winning the presidency over Al Gore.