In the Short Run,a Perfectly Competitive Firm Can Experience Which

question 220

Multiple Choice

In the short run,a perfectly competitive firm can experience which of the following?
i.an economic profit
ii.an economic loss but it continues to stay open
iii.an economic loss equal to its total fixed cost when it shuts down

• A) only i
• B) i and ii
• C) i and iii
• D) ii and iii
• E) i, ii, and iii

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Definitions:

High Costs

In economics and decision-making, this refers to situations where the expenses associated with an action or transaction are significant, potentially impacting the feasibility or desirability of that action.

Bystander Effect

A social psychological phenomenon that occurs when individuals do not offer help to a victim when other people are present.

Social Rejection

The experience of being deliberately excluded or disregarded by other individuals or groups.

Urban Overload Hypothesis

A theory suggesting that people living in densely populated urban areas experience higher levels of stress and mental fatigue due to the excessive amount of stimuli they are exposed to.