In the Short Run, If a Perfectly Competitive Firm Is

question 110

Multiple Choice

In the short run, if a perfectly competitive firm is producing at a price above average total cost, its economic profit must be:

• A) positive.
• B) zero.
• C) negative.
• D) normal.

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Definitions:

Prestige Products

High-quality goods or services that convey status and luxury to consumers, often associated with high prices and exclusivity.

Shopping Products

Goods that consumers spend a considerable amount of time and effort in selecting and purchasing, such as clothes, electronics, and furniture.

Unsought Products

Items that the consumer does not know about or knows about but does not initially want.

Impulse Buys

Purchases made spontaneously without prior planning, often triggered by emotions or the strategic placement of products.