In the Short Run,perfectly Competitive Firms

question 246

Multiple Choice

In the short run,perfectly competitive firms

• A)always earn an economic profit
• B)never earn an economic profit
• C)always invest more in order to earn more
• D)never suffer an economic loss
• E)can earn an economic profit

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Definitions:

Withdrawals

The act of taking money out of an account, fund, or similar financial vehicle.

Invest

To allocate money in the expectation of some benefit in the future, usually through the purchase of assets with the hope that they will increase in value.

Ordinary Annuity

Continuous uniform payouts effected at every period’s cessation over a stipulated time frame.

Compounded Quarterly

A method of calculating interest where the interest earned is added to the principal four times a year, leading to interest on interest.