If a perfectly competitive firm is maximizing profits in the short run,what does this mean?
A) The profit must be positive.
B) The profit equals zero.
C) The profit must be zero or positive.
D) The profit can be negative,zero,or positive.
E) The profit must be negative.

Question

Quizplus · Accepted Answer

In the short run, a perfectly competitive firm can experience negative profits (losses), zero profit (normal profit), or positive profits. Profit maximization occurs where marginal cost equals marginal revenue, regardless of the level of profit.

If a Perfectly Competitive Firm Is Maximizing Profits in the Short