Which of the Following Could Generate Economic Profits for Perfectly

question 237

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:

Cyano Substituent

A cyano substituent refers to a group containing a carbon triple-bonded to a nitrogen atom (-C≡N) attached to a molecular framework.

Aromatic Ring

A cyclic molecule with conjugated pi electrons that exhibits enhanced stability, typified by the benzene ring.

Deactivator

A chemical group or substituent attached to an aromatic ring that decreases its reactivity in electrophilic aromatic substitution reactions.

Friedel-Crafts Acylation

A chemical reaction that introduces an acyl group into an aromatic ring, facilitated by a Lewis acid catalyst, used in synthetic chemistry.