If a Competitive Firm Cannot Earn Profit at Any Level

question 43

Multiple Choice

If a competitive firm cannot earn profit at any level of output during a given short-run period,then which of the following FALSE?

• A) It will shut down in the short run and wait until the price increases sufficiently.
• B) It will exit the industry in the long run.
• C) It will operate at a loss in the short run.
• D) It will minimize its loss by decreasing output so that price exceeds marginal cost.

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Definitions:

Salary Determination

Refers to the process by which the compensation levels for job positions within an organization are set, based on factors like market rates, experience, skills, and organizational budgets.

Multisource Feedback

A performance evaluation method that utilizes the viewpoints of multiple stakeholders, including peers, subordinates, and superiors.

Performance Ratings

The evaluation of an employee's work performance over a certain period of time.

Policy Decision

A deliberate choice or determination made by those in authority regarding the adoption of certain policies or courses of action.