In the Long Run, If a Perfectly Competitive Firm Cannot

question 39

Multiple Choice

In the long run, if a perfectly competitive firm cannot cover its costs, the profit-maximizing firm will

• A) continue to produce as long as total revenue exceeds total fixed cost.
• B) continue to produce as long as total revenue exceeds total variable cost.
• C) continue to produce to maximize its opportunity costs.
• D) seek more rewarding opportunities in some other industry.
• E) increase output and lower price.

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Definitions:

Political Life

The aspect of society that deals with the structure, processes, and activities related to governance, policymaking, and public administration.

Indirect Influence

The subtle or unintentional effects on individuals or society by cultural texts, media, or other external factors, often shaping attitudes or behaviors without direct persuasion.

Key Feature

is a primary or distinctive attribute of a product or service that sets it apart from its competitors.

Observational Learning

A process of learning that occurs through observing the behavior of others and the outcomes of those behaviors.