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:

Monotremes

A group of egg-laying mammals that includes the platypus and echidnas.

Marsupials

Mammals that carry and nourish their newborns in an external pouch, including species such as kangaroos, koalas, and opossums.

Placentals

Mammals that nourish their developing fetus via a placenta, an organ that facilitates the exchange of nutrients, gases, and wastes between the mother and fetus.

Notochord

A flexible rod-shaped structure that provides support in the embryonic stages of all chordates, including humans.