In Perfectly Competitive Markets, If the Price Is _______

question 175

Multiple Choice

In perfectly competitive markets, if the price is _______ , the firm will _______ .

• A) greater than ATC; make an economic profit
• B) less than the minimum AVC; shut down
• C) greater than the minimum AVC but less than ATC; continue to produce and incur a loss.
• D) all of the above are true.

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Definitions:

Categorical Variables

Variables that represent types or categories that data can fall into; they can be nominal (no specific order) or ordinal (with some order or ranking).

Quantitative Variables

Variables that are measurable and can be expressed numerically, representing counts or measurements.

Categorical Data

Data that can be separated into specific categories according to distinct characteristics that are non-numeric.

Geographical Areas

Refers to specific physical locations defined by natural or artificial boundaries.