Which of the Following Could Generate Economic Profits for Perfectly

question 35

Multiple Choice

Which of the following could generate economic profits for perfectly competitive firms in the short run, if they initially earn zero economic profits?

• A) A fall in demand
• B) A unit tax on output
• C) An increase in total fixed costs
• D) A decrease in input prices

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Definitions:

Psychosocial Development

A concept by Erik Erikson that outlines how individuals evolve emotionally and socially across eight stages throughout their lifespan.

Wisdom

The ability to think and act using knowledge, experience, understanding, common sense, and insight.

Adulthood Stage

A period in human development that generally includes young adulthood, middle age, and older adulthood, characterized by mature reasoning, independence, and responsibility.

Adolescence

A developmental stage that marks the transition from childhood to adulthood, characterized by significant physical, psychological, and social changes.