A Perfectly Competitive Firm Is Operating Where Its Total Revenue

question 80

Multiple Choice

A perfectly competitive firm is operating where its total revenue equals its total cost.In the short run,if market demand increases,this firm will have an economic

• A)loss and reduce output
• B)loss while expanding output
• C)profit and reduce output
• D)profit while expanding output
• E)profit,but will not change output

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Definitions:

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically involving predefined interest payments and return of principal at maturity.

Equity Securities

Financial instruments representing ownership interest in a company, such as stocks, which provide an equity stake to investors.

Equity Method

An accounting technique used to record investments in associate companies, recognizing the investor's share of the earnings as income.

Dividends

Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.