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:

Ethical Dilemma

A situation where a person is faced with a choice that involves a conflict between two moral imperatives, neither of which is unambiguously acceptable or preferable.

Clear Decision

An unambiguous and definitive resolution or ruling on a matter, leaving no room for confusion or doubt.

Firm

A business organization, such as a company or partnership, engaged in commercial, industrial, or professional activities.

Positive Abstractions

Conceptual ideals or values that are perceived as beneficial or constructive to individuals or society.