Among the Following Situations,the One That Is Least Likely to Apply

question 159

Multiple Choice

Among the following situations,the one that is least likely to apply to a monopolistically competitive firm is that in which

• A)profit is positive in the short run.
• B)total cost exceeds total revenue in the short run.
• C)profit is positive in the long run.
• D)total revenue equals total cost in the long run.

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Definitions:

Break-even Sales

The amount of revenue that must be generated to cover total fixed and variable costs, resulting in zero net income or loss.

Unit Selling Price

The price at which a single unit of a product is sold, determining the revenue generated from sales.

Variable Costs

Costs that vary directly with the level of production or business activity, such as materials and labor.

Operating Income

Earnings before interest and taxes (EBIT), representing the amount of profit realized from a business's operations.