Which of the Following Statements Is True in the Short

question 171

Multiple Choice

Which of the following statements is true in the short run?

• A) Identical firms can enjoy positive economic profits.
• B) Identical firms face a downward-sloping supply curve.
• C) Nonidentical firms face a downward-sloping supply curve.
• D) Nonidentical firms cannot enjoy positive economic profits.

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Definitions:

Marginal Cost

The extra expense associated with making an additional unit of a product or service.

Hardcover Books

Books bound with rigid protective covers, often made of wood, cardboard, or similar materials, offering higher durability than paperback versions.

Paperback

A book bound in a flexible paper cover, often less expensive than hardcover editions.

Robinson-Patman Act

A 1936 U.S. law aimed at preventing anticompetitive practices by producers, specifically price discrimination.