If the Representative Firm in a Purely Competitive Industry Is

question 18

Multiple Choice

If the representative firm in a purely competitive industry is in short-run equilibrium and, at its current output level, its marginal cost exceeds its average total cost, then we can conclude that

• A)the firm is suffering economic losses.
• B)the firm is not maximizing profits in the short run.
• C)some firms will exit the industry in the long run.
• D)other firms will enter the industry in the long run.

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Definitions:

Emergency Circuit

A dedicated electrical circuit designed to maintain operation of critical systems in the event of a failure or emergency situation.

FMVSS-121

Federal Motor Vehicle Safety Standard 121, which specifies requirements for air brake systems in heavy trucks to ensure safety through braking performance.

Stopping Distance

The total distance a vehicle travels from the time the brakes are applied until it comes to a complete stop, including both reaction and braking distances.

Tractor-Trailer Semi-Combination

A combination of a tractor unit and one or more semi-trailers to carry freight.