In the Short Run,a Perfectly Competitive Firm ________ Make an Economic

question 182

Multiple Choice

In the short run,a perfectly competitive firm ________ make an economic profit and ________ incur an economic loss.

• A) might; will never
• B) will never; might
• C) might; might
• D) will never; will never
• E) will definitely; will never

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Definitions:

Quantity Demanded

The specific amount of a good or service consumers are willing to buy at a given price, holding other factors constant.

Elasticity Coefficient

A measure that quantifies the responsiveness of the quantity demanded or supplied of a good to a change in one of its determinants, such as price.

Relative Change

The measure of change in a variable relative to its initial value, often expressed as a percentage.

Inelastic

Describes a situation where the quantity demanded or supplied of a good or service changes by a relatively small amount in response to changes in its price.