If a Firm in a Perfectly Competitive Market Is Operating

question 44

Multiple Choice

If a firm in a perfectly competitive market is operating at its profit-maximizing level of output and suddenly faces a reduction in the price it can charge for its product,will the firm suspend operations?

• A)No,because it can always raise its prices in the short run.
• B)No,because it can always raise its prices in the long run.
• C)No,as long as the firm earns sufficient revenue to pay all of the variable costs.
• D)Yes,since it never makes sense to operate at a loss,even in the short run.
• E)No,because it always makes sense to operate at a loss,even in the long run.

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Definitions:

American Women

Females residing in or are citizens of the United States, known for their diverse cultural, social, and economic backgrounds.

Respiratory System

The complex network of organs and tissues, including the lungs and airways, responsible for the exchange of oxygen and carbon dioxide between the body and the environment.

Leukocytes

White blood cells that are part of the immune system, helping to fight off infections and diseases.

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration, essential to plant photosynthesis.