A Perfectly Competitive Firm Is Operating Where Its Total Revenue

question 80

Multiple Choice

A perfectly competitive firm is operating where its total revenue equals its total cost.In the short run,if market demand increases,this firm will have an economic

• A)loss and reduce output
• B)loss while expanding output
• C)profit and reduce output
• D)profit while expanding output
• E)profit,but will not change output

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Definitions:

Non-Sufficient Funds

A situation where a bank account does not have enough money to cover a transaction, resulting in a failed payment.

Outstanding Checks

Checks that have been issued by a company but have not yet been cashed or cleared by the bank upon which they are drawn.

Bank Statement

A monthly report from a bank that shows deposits recorded, checks cleared, other debits and credits, and a running bank balance. This same information is available on a daily basis from the bank’s online banking site.

Credit Terms

The conditions under which credit is extended by a seller to a buyer, including payment deadline, discount for early payment, and service charge for late payment.