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.
D
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When economic analysis takes place within the context of maximizing a social welfare function, the conclusion always is _____
a. that income should be completely redistributed b. that income should not be redistributed at all c. that some level of redistribution is optimal d. that income redistribution has no relations to maximizing social welfare
The graph depicting the inverse relationship between the economy's rate of unemployment and rate of inflation is called the
a. Laffer curve b. aggregate expenditure model c. Keynesian cross d. Phillips curve e. consumption curve