In the Short Run,a Perfectly Competitive Firm

question 81

Multiple Choice

In the short run,a perfectly competitive firm

• A) must make an economic profit.
• B) must incur an economic loss.
• C) must make zero economic profit.
• D) might make an economic profit, zero economic profit, or incur an economic loss.
• E) None of the above answers is correct.

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Definitions:

Service Revenue

Income earned by a company through the provision of services to customers or clients.

Notes Payable

A written promise to pay a specified amount of money, along with interest, by a certain date.

Interest Expense

Expenses that a company faces for using borrowed capital, usually shown on the profit and loss statement.

Owner's Equity

The residual interest in the assets of an entity that remains after deducting its liabilities. It represents the ownership interest of the shareholders in a company.