If a Competitive Firm Cannot Earn a Profit at Any

question 73

Multiple Choice

If a competitive firm cannot earn a profit at any level of output during a given short-run period, then which of the following is FALSE?

• A)It will shut down in the short run and wait until the price increases sufficiently.
• B)It will exit the industry in the long run.
• C)It will operate at a loss in the short run.
• D)It will minimize its loss by decreasing output so that price exceeds marginal cost.

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Definitions:

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World Intellectual Property Organization

A specialized agency of the United Nations that oversees and promotes the protection of intellectual property rights across the world.

Lanham Act

The primary federal statute governing trademarks, service marks, and unfair competition, in the United States.

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