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.

Question

Quizplus · Accepted Answer

In the short run, a perfectly competitive firm can experience a range of economic outcomes depending on market conditions, costs, and prices. It might make an economic profit if its total revenue exceeds total costs, break even with zero economic profit if total revenue equals total costs, or incur an economic loss if total costs exceed total revenue.

In the Short Run,a Perfectly Competitive Firm