-The Above Figure Shows a Perfectly Competitive Firm

question 114

Multiple Choice

-The above figure shows a perfectly competitive firm.If the market price is $5 per unit,the firm

• A) will definitely shut down to minimize its losses.
• B) will stay open to produce and will make zero economic profit.
• C) will stay open to produce and will incur an economic loss.
• D) will stay open to produce and will make an economic profit.
• E) might shut down but more information is needed about the fixed cost.

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Definitions:

Ridicule

The act of mocking, deriding, or making fun of someone or something, often with the intent to belittle or demean.

Bureaucratic Inertia

The tendency of bureaucratic organizations to resist change and continue with established procedures, even in the face of new challenges or needs.

Sociological Criticism

Analyzing and critiquing social phenomena from a sociological perspective, often questioning underlying societal norms and structures.

Oligarchy

Means “rule of the few.” All bureaucracies have a supposed tendency for power to become increasingly concentrated in the hands of a few people at the top of the organizational pyramid.