Suppose That, in the Short Run, a Perfectly Competitive Firm $\times$

question 14

Multiple Choice

Suppose that, in the short run, a perfectly competitive firm earns a normal profit. Which of the following is incorrect?

• A) MR = price
• B) MR = ATC
• C) AR \(\times\) Q = TR
• D) TR = TC
• E) P = AVC

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Definitions:

Satisficing

A strategy in decision-making that focuses on achieving an acceptable or sufficient outcome, as opposed to the best possible solution.

Decision-Making Techniques

Methods or procedures applied to make choices among alternatives aimed at solving problems or achieving objectives.

Organizational Standards

Established benchmarks of quality or expectations for behavior and operations within an organization.

Escalating Commitment

The phenomenon where individuals or organizations continue to invest time, money, or resources into a failing course of action due to previously invested effort.