If a Competitive Firm Can Make Enough Revenue to Cover

question 36

Multiple Choice

If a competitive firm can make enough revenue to cover its variable costs,the firm will

• A) always earn a profit.
• B) always earn a loss.
• C) earn a profit in the long run.
• D) choose to remain open.
• E) shut down.

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Definitions:

Wheat

A cereal grain cultivated worldwide and a staple food in many parts of the world, used for making flour, bread, and other food products.

Wine

An alcoholic beverage made from fermented grapes or other fruits, with variations in taste and strength depending on the type of grape and production process.

Production Possibility Frontier

An image projecting the ultimate production capacities for a duo of items, rooted in a given assortment of inputs including resources and extra aspects.

Technology Level

The current state of technological advancement and availability in a society or sector.