If Price Is Less Than Minimum Average Variable Cost,a Perfectly

question 66

Multiple Choice

If price is less than minimum average variable cost,a perfectly competitive firm that continues to produce in the short run _____

• A)earns a positive economic profit.
• B)incurs a loss greater than its fixed cost.
• C)can cover all of its fixed cost and some of its variable cost.
• D)can cover all of its variable cost and some of its fixed cost.
• E)can cover both its fixed cost and its variable cost.

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Definitions:

Shaft Revolution

The number of rotations that a shaft completes in a given period of time, often measured in revolutions per minute (RPM).

Permissable Operating Angles

The maximum angles at which certain mechanical components, such as driveshafts, can operate without causing damage or undue wear.

Driveshaft Rpm

Driveshaft Rpm (Revolutions per Minute) measures the rotational speed of the driveshaft in a vehicle, indicating how many times the shaft completes a full rotation in one minute.

U-joint Working Angles

The angles at which a universal joint operates, crucial for the proper transfer of rotary motion in drivelines.