If a Perfectly Competitive Firm Cannot Avoid Economic Losses,it Should

question 34

Multiple Choice

If a perfectly competitive firm cannot avoid economic losses,it should continue to operate in the short run as long as

• A)marginal revenue exceeds average fixed cost
• B)price exceeds average total cost
• C)the market price exceeds average total cost
• D)the marginal revenue is less than the average variable cost
• E)price exceeds average variable cost

---

Definitions:

Maximizing Profits

The process by which a firm adjusts its production to achieve the highest possible profit.

Metropolitan Opera

A leading American opera company based in New York City, known for its live performances and international broadcasts.

Perfect Competitor

A perfect competitor refers to a market participant in a perfectly competitive market, characterized by many buyers and sellers, all dealing in a homogenous product with no barriers to entry or exit.

Entire Market

The total comprehensive scope of a marketplace, encompassing all buyers, sellers, and products involved.