If a Firm in the Long Run Produces Less Than

question 86

Essay

If a firm in the long run produces less than its efficient scale,it
A) should raise its markup to increase its profit.
B) should lower its markup to increase its profit.
C) cannot be a perfectly competitive firm.
D) should not advertise to increase its profit.
E) must have its markup equal to zero.

• A) should raise its markup to increase its profit.
• B) should lower its markup to increase its profit.
• C) cannot be a perfectly competitive firm.
• D) should not advertise to increase its profit.
• E) must have its markup equal to zero.

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Definitions:

Refractory Period

The period immediately following the transmission of an impulse in nerve or muscle cells during which a second impulse cannot be generated.

Tetanus

A serious bacterial infection characterized by muscle stiffness and spasms, caused by the toxin produced by Clostridium tetani.

Muscle Fiber

A single muscle cell, typically elongated and capable of contracting to produce movement or maintain posture.

Complete Tetanus

A state of sustained muscle contraction caused by rapid, repeated stimulation surpassing the relaxation phase between stimuli.