A Purely Competitive Firm Is in Short-Run Equilibrium and Its

question 40

Multiple Choice

A purely competitive firm is in short-run equilibrium and its MC exceeds its ATC.It can be concluded that:

• A) firms will leave the industry in the long run.
• B) the firm is realizing an economic profit.
• C) the firm is realizing a loss.
• D) this is an increasing-cost industry.

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Definitions:

Markup Percent

The percentage increase over the cost price of a product to calculate the selling price.

Selling Price

The actual price at which a product or service is sold to the customer.

Camping Equipment

Gear or tools specifically designed for use while camping, including tents, sleeping bags, and portable cooking devices.

Portable Gas Stove

A compact and transportable cooking device that uses gas fuel for outdoor or emergency cooking.