If a Competitive Firm Is in Short-Run Equilibrium,then

question 60

Multiple Choice

If a competitive firm is in short-run equilibrium,then

• A) profits equal zero.
• B) it will not operate at a loss.
• C) an increase in its fixed cost will have no effect on profit.
• D) an increase in its fixed cost will have no effect on output.

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Definitions:

Unearned Ticket Revenue

Revenue received from tickets sold for future events, recognized as a liability until the service is performed or event takes place.

Sales Revenue

The total amount of money generated from the sale of goods or services before any costs or expenses are deducted.

Payroll Taxes

Taxes imposed on employers and employees, calculated as a percentage of the salaries that employers pay to their staff.

Current Liability

Financial obligations a company owes and is expected to pay within a year.