In the Long Run, a Firm in a Perfectly Competitive

question 251

Multiple Choice

In the long run, a firm in a perfectly competitive industry will supply output only if its total revenue covers its

• A) explicit plus its implicit costs.
• B) fixed costs.
• C) implicit costs.
• D) explicit costs.

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Definitions:

Quick Ratio

A liquidity metric that measures a company's ability to cover its short-term obligations with its most liquid assets excluding inventory.

Contingent Liability

A potential financial obligation that depends on a future event occurring or not occurring.

Reasonably Possible

A term used to describe the likelihood of an event occurring that is more than remote but less than probable, often used in financial reporting.

Not Estimable

A term indicating that something cannot have its value, size, or amount accurately determined or calculated.