If the Price Is Greater Than Average Total Cost at the Profit-Maximizing

question 155

Multiple Choice

If the price is greater than average total cost at the profit-maximizing quantity of output in the short run,a perfectly competitive firm will:

• A)produce at a loss.
• B)produce at a profit.
• C)shut down production.
• D)produce more than the profit-maximizing quantity.

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Definitions:

Indicates

Suggests or implies something as a sign or symptom of a particular condition or situation.

Pancreatic Protease

Enzymes produced by the pancreas that break down proteins into smaller peptides.

Amylase

An enzyme that catalyzes the hydrolysis of starch into sugars.

Trypsin

A digestive enzyme produced in the pancreas and secreted into the small intestine, where it breaks down proteins into smaller peptides.