If a Firm in a Competitive Industry Is Making Zero

question 203

Multiple Choice

If a firm in a competitive industry is making zero economic profit but still producing, it must be the case that:

• A) MC = MR > ATC.
• B) MC = MR < ATC.
• C) MC = ATC > MR.
• D) MC = MR = ATC.
• E) this situation is not possible.

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Definitions:

Decedent

A term referring to a person who has died.

Trust

A legal arrangement in which one party holds property for the benefit of another.

Appeal

The process of seeking a higher court's review of a lower court's decision in hopes of reversing or changing the outcome.

Power of Attorney

A legal document that authorizes one person to act on behalf of another in legal or financial matters.