In the Short Run, a Perfectly Competitive Firm NEVER

question 120

Multiple Choice

In the short run, a perfectly competitive firm NEVER

• A) earns an economic profit.
• B) incurs a loss greater than its total fixed costs.
• C) produces where MR = MC.
• D) earns a normal profit.

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Definitions:

Federal Question

A matter that involves the U.S. Constitution, a federal statute or statutes, or a treaty; handled by federal district courts.

Treaty

A formally concluded and ratified agreement between countries or sovereign states.

Cyber-Jurisdiction

The authority of a court to hear a case based on Internet-related transactions.

Stream of Commerce

The concept that goods are part of a continuous process from production to sale, affecting interstate and international trade laws.