In the Short Run,if AVC < P < ATC,a Perfectly

question 229

Multiple Choice

In the short run,if AVC < P < ATC,a perfectly competitive firm:

• A)produces output and earns an economic profit.
• B)produces output and incurs an economic loss.
• C)does not produce output and earns an economic profit.
• D)does not produce output and earns zero economic profit.

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Definitions:

Experiments

Controlled procedures carried out to investigate relationships between variables, often to test a hypothesis.

Quasi Experimental

A research design that attempts to establish a cause-and-effect relationship but lacks random assignment of participants to conditions.

Randomly Assigned

A method used in experiments where participants are allocated to different groups without bias, ensuring each participant has an equal chance of being assigned to any group, enhancing the validity of the results.

Quasi-experimental Study

A research design that resembles an experimental study but lacks random assignment to treatment or control groups, making causal conclusions less reliable.