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.

---

Definitions:

Irresistible Impulse Rule

A legal defense theory stating that a defendant was compelled to commit a crime due to an overwhelming impulse that they could not resist, despite understanding the nature of the act.

Diminished Capacity

A legal defense asserting that an individual's mental state, though not completely impaired, was significantly disturbed at the time of the crime, affecting their judgment or intentions.

Guilty but Mentally Ill

A legal verdict that indicates the defendant is guilty of the charges but was also suffering from mental illness at the time of the crime.

Critics

Individuals who evaluate, analyze, and sometimes offer judgments about various forms of creative work or actions.