For a Perfectly Competitive Firm in the Short Run, If

question 119

Multiple Choice

For a perfectly competitive firm in the short run, if the following conditions are true, P = MR = MC > AC, then

• A)the firm is maximizing profits and is making an economic profit.
• B)the firm is not maximizing profits but is making an economic profit.
• C)the firm is not maximizing profits and is not making an economic profit.
• D)the firm is maximizing profits and is suffering an economic loss.

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Definitions:

Products and Services

The tangible goods and intangible offerings that businesses provide to consumers in exchange for payment.

Trading Company

A trading company is an entity that connects buyers and sellers of various commodities, goods, or services, often operating internationally to facilitate trade across borders.

Import Broker

An individual or firm that acts as an intermediary between an importer and the government, facilitating the importation of goods through customs clearance and compliance with local regulations.

Sales Agent

An intermediary or representative who negotiates sales for products or services on behalf of another party, typically earning a commission for transactions.