In the Short Run, a Perfectly Competitive Firm

question 371

Multiple Choice

In the short run, a perfectly competitive firm

• A) cannot shut down.
• B) must make zero economic profit.
• C) can make an economic profit, incur an economic loss, or make zero economic profit.
• D) will not incur an economic loss if it shuts down.

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Definitions:

Unconformity

A geological surface that represents a time gap in the rock record, often where older rocks are overlain by much younger rocks without intermediate layers.

Shale Layer

A fine-grained sedimentary rock composed of clay, quartz, and other minerals, typically found in layered formations.

Granites

An igneous rock, chiefly made up of quartz, feldspar, and mica, with a coarse texture, widely used for construction purposes.

Mineral Deposits

Concentrations of minerals within the earth's crust that are of economic interest due to their potential for mining.