If a Perfectly Competitive Firm Is Incurring a Short-Run Loss

question 152

Multiple Choice

If a perfectly competitive firm is incurring a short-run loss, it

• A)then will incur a long-run loss
• B)will shut down
• C)will continue to operate in the short run if its fixed cost is covered
• D)will continue to operate in the short run if its variable cost is covered
• E)will raise its price in the short run

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Definitions:

Labour Shortages

A situation in which there are insufficient qualified candidates available to fill the positions needed by employers in the labor market.

Employee Engagement

The emotional commitment an employee has to their organization and its goals, resulting in the use of discretionary effort in their work.

Psychological Capital

A concept in positive organizational behavior characterized by an individual's positive psychological state of development, evidenced by self-efficacy, optimism, hope, and resilience.

Positive Psychological State

A mental condition characterized by the presence of positive emotions, such as happiness and fulfillment, and the absence of negative emotions.