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-Consider the Perfectly Competitive Firm in the Above Figure

Question 211

Multiple Choice

  -Consider the perfectly competitive firm in the above figure. What will the firm choose to do in the short-run and why? A)  shut down because the firm incurs an economic loss B)  stay in business because the firm is making an economic profit C)  stay in business because the firm's economic loss is less than fixed costs D)  stay in business because it is making zero economic profit
-Consider the perfectly competitive firm in the above figure. What will the firm choose to do in the short-run and why?


A) shut down because the firm incurs an economic loss
B) stay in business because the firm is making an economic profit
C) stay in business because the firm's economic loss is less than fixed costs
D) stay in business because it is making zero economic profit

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