If a Perfectly Competitive Firm's Price Is Above Its Average

question 178

Multiple Choice

If a perfectly competitive firm's price is above its average total cost, the firm

• A)is earning a profit.
• B)should shut down.
• C)is incurring a loss.
• D)is breaking even.

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Definitions:

Resources

Assets, materials, or other assets that can be utilized to achieve goals or complete tasks.

Direct Costs

Expenses that are directly attributable to the production of goods or services, such as materials and labor.

IFB

An Invitation for Bid, a solicitation issued by organizations when they require contractors to bid on supplying goods or services.

Internal Proposals

internal proposals refer to suggestions or plans put forward within an organization, aimed at addressing internal issues or proposing new initiatives for improvement.