In the Short Run,a Perfectly Competitive Firm

question 81

Multiple Choice

In the short run,a perfectly competitive firm

• A) must make an economic profit.
• B) must incur an economic loss.
• C) must make zero economic profit.
• D) might make an economic profit, zero economic profit, or incur an economic loss.
• E) None of the above answers is correct.

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Definitions:

R&D

R&D stands for Research and Development, a business or government activity that involves the investment of resources to create new products, processes, or services or to improve upon existing ones.

Technological Advance

The development and application of innovative technologies that enhance efficiency, productivity, or capabilities in processes, products, or services.

Production Possibilities

The various combinations of goods and services that a society can produce using its available resources and technology.

Innovation

The process of creating, developing, and implementing new products, services, or processes.