If the Price Is Less Than a Perfectly Competitive Firm's

question 253

Multiple Choice

If the price is less than a perfectly competitive firm's minimum average variable cost,the firm

• A) makes an economic profit.
• B) operates and incurs an economic loss equal to total fixed cost.
• C) operates and incurs an economic loss equal to average variable cost.
• D) shuts down and incurs an economic loss equal to total fixed cost.
• E) shuts down and incurs an economic loss equal to average variable cost.

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