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.

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Definitions:

Doing Business

Engaging in activities that relate to the production, buying, and selling of goods or services for profit.

Prejudice

Preconceived opinion or judgment towards people, groups, or subjects that is not based on reason or actual experience.

Johari Window

A psychological tool created to help people understand their interpersonal communication and relationships.

Untapped Potential

Referring to abilities, talents, or resources that have not yet been discovered or utilized to their full extent.