If a Perfectly Competitive Firm Finds That Price Is Less

question 18

Multiple Choice

If a perfectly competitive firm finds that price is less than its ATC,then the firm

• A) will raise its price to increase its economic profit.
• B) will lower its price to increase its economic profit.
• C) is making an economic profit.
• D) is incurring an economic loss.
• E) is making zero economic profit.

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Definitions:

Workload

Workload refers to the amount of work an individual or group is expected to complete in a specified period of time.

Response

The reaction or reply to a stimulus or situation, often evaluated in various contexts like medical treatments or surveys.

Arrhythmia

An irregular heartbeat that can range from harmless to life-threatening conditions.

Electrodes

Conductive elements used to establish an electrical connection with the nonmetallic part of a circuit, often found in medical and industrial applications.