In the Short Run,if P = ATC,a Perfectly Competitive Firm

question 306

Multiple Choice

In the short run,if P = ATC,a perfectly competitive firm:

• A)produces output and earns zero economic profit.
• B)produces output and earns an economic profit.
• C)produces output and incurs an economic loss.
• D)does not produce output and incurs an economic loss.

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Definitions:

Suffix

A letter or group of letters added at the end of a word to form a derivative or to change its grammatical function.

Pair

Two items, objects, or individuals that are matched or associated with each other, forming a couple or duo.

Suffix

A morpheme added at the end of a word to form a derivative or to alter its meaning.

Happy

A state of well-being and contentment characterized by emotions ranging from contentment to intense joy.