In the Short Run, a Perfectly Competitive Firm

question 322

Multiple Choice

In the short run, a perfectly competitive firm

• A) can either make an economic profit, incur an economic loss, or make zero economic profit.
• B) never incurs an economic loss larger than its average fixed costs.
• C) produces at any price.
• D) always makes an economic profit.

Recognize the role of social cognitive theory in learning and behavior modification.

Identify the concept and importance of self-regulation in achieving desired outcomes.

Identify the key factors that influence perception: the comprehender, the environment, and the focal object.

Grasp the principles of reinforcement theory and its schedules.

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Definitions:

Discount Rate

The discount rate employed to ascertain the present worth of forthcoming cash flows in an analysis of discounted cash flow.

NPV

Net Present Value; the calculation of the present value of cash inflows minus the present value of cash outflows over a period.

Cash Flows

The movement of money into and out of a business, representing its operating, investing, and financing activities.

WACC

Weighted Average Cost of Capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is proportionately weighted, including debt, equity, and any other long-term debt.