Assume That in the Short Run a Perfectly Competitive Firm

question 169

Essay

Assume that in the short run a perfectly competitive firm does not produce output and has economic losses.This would occur if:
A.P = ATC and FC = 0.
B.P < AVC and FC > 0.
C.AVC > P > ATC and FC = 0.
D.AVC < P < ATC and FC >0.

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Definitions:

Four Ps of Marketing

A marketing mix model that consists of product, price, place, and promotion, used to pursue marketing objectives.

Environmental Forces

External factors such as social, economic, technological, competitive, and regulatory conditions that affect an organization's marketing decisions and performance.

Marketing Problem

A situation or issue that needs resolution for a business or brand to effectively reach its target market and achieve marketing objectives.

Marketing Mix

The set of tactical marketing tools - Product, Price, Place, and Promotion that the firm blends to produce the response it wants in the target market.