If a Perfectly Competitive Business Closes Down in the Short

question 56

Multiple Choice

If a perfectly competitive business closes down in the short run:

• A)its loss will be zero
• B)it will realize a normal profit
• C)it will realize a loss equal to its variable costs
• D)it will realize a profit equal to its fixed costs
• E)it will realize a loss equal to its fixed costs

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Definitions:

Interest Level

The degree of curiosity or concern one has in a subject or activity.

Teamwork

The cooperative effort by the members of a group to achieve a common goal.

Directive Style

A leadership approach characterized by providing clear, explicit instructions and expectations while closely supervising tasks.

Formal Structure

Organized and systematic arrangement of relationships, duties, and roles within an organization.