For a Perfectly Competitive Firm in Short-Run Equilibrium, If the Price

question 107

Multiple Choice

For a perfectly competitive firm in short-run equilibrium, if the price is between AVC and ATC, what can we conclude?

• A) that economic profits will be negative
• B) that accounting profits will be negative
• C) that the firm will not produce
• D) that the loss will be equal to total fixed costs

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