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
Correct Answer:
Verified
Related Questions
Q206: Q207: The short-run supply curve for a perfectly Q208: A perfectly competitive firm's short-run supply curve Q209: The section of the marginal cost curve![]()