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:

Core Nations

Countries that dominate the global economy and international trade, possessing advanced technological infrastructures and high levels of productivity.

Semiperipheral Nations

Countries in the world-system that are intermediate, neither fully developed nor least developed, often marked by moderate levels of industrialization and average per capita incomes.

Peripheral Nations

Countries that are less economically developed and often depend on core nations for capital and are exploited for labor and raw materials.

Globalization

Increased economic, political, and social interconnectedness and interdependence among societies in the world.