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.

---

Definitions:

Commercial Activity

Operations and actions undertaken by businesses and individuals to produce, buy, or sell goods and services in an attempt to generate profits.

Foreign Sovereign Immunities Act

A United States law that sets limitations on lawsuits involving foreign governments in U.S. courts, establishing the extent to which such entities can be sued.

Sovereign Immunity

A doctrine that immunizes foreign nations from the jurisdiction of U.S. courts when certain conditions are satisfied.

U.K.'s Laws

The legal rules and regulations that are governing within the United Kingdom, encompassing statutes, common law, and legal precedents.