If a Perfectly Competitive Firm Finds That Price Is Less

question 18

Multiple Choice

If a perfectly competitive firm finds that price is less than its ATC,then the firm

• A) will raise its price to increase its economic profit.
• B) will lower its price to increase its economic profit.
• C) is making an economic profit.
• D) is incurring an economic loss.
• E) is making zero economic profit.

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Definitions:

Eudicot Seeds

Eudicot Seeds belong to one of the two major groups of flowering plants, characterized by having two seed leaves, or cotyledons, upon germination, among other distinct structural features.

Nutritive Material

Substances that provide nourishment essential for growth and the maintenance of life.

Endosperm

The 3n nutritive tissue that is formed at some point in the development of all angiosperm seeds.

Ovule Wall

The protective outer layer of an ovule, which develops into the seed coat upon fertilization.