If a Perfectly Competitive Firm's Price Is Above Its Average

question 178

Multiple Choice

If a perfectly competitive firm's price is above its average total cost, the firm

• A)is earning a profit.
• B)should shut down.
• C)is incurring a loss.
• D)is breaking even.

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Definitions:

Millions

A numeral term signifying a thousand thousands, or 1,000,000 units of a given quantity.

Alkaline Substances

Alkaline substances are compounds that have a pH level greater than 7, indicating a basic property as opposed to acidic.

River Water

Water found in rivers, which is often a source of freshwater for communities, agriculture, and ecosystems.

Potassium

A chemical element with symbol K, essential for the functioning of all living cells, and a major component in plant nutrition.