Under What Conditions Would a Perfectly Competitive Cotton Farmer Who

question 98

Multiple Choice

Under what conditions would a perfectly competitive cotton farmer who is incurring an economic loss temporarily stay in business?

• A) if the total revenue exceeds the total fixed cost
• B) if the total revenue exceeds the total variable cost
• C) if the total revenue is positive
• D) if the total revenue is increasing
• E) if the marginal revenue exceeds the price.

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Definitions:

Entrepreneur

An individual who starts, organizes, manages, and assumes the risks of a business or enterprise.

Small Companies

Organizations with a limited number of employees and revenue, often characterized by a narrow market focus.

Microloans

Small-business loans often used to buy equipment or operate a business.