Subject - Economics:

Microeconomics

MCQ - 125-4135

Question:

Which of the following is true of the perfectly competitive firm in the short run?

The firm earns a normal profit.
The firm shuts down if the price falls below average total cost.
The firm earns positive economic profit.
The firm shuts down if the price falls below average total cost.
The firm may earn positive, negative, or normal profits.

Correct Answer: E

Explanation:

In perfect competition, short-run profits may be positive or negative, or normal, but long-run profits are always normal.

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269 MCQ for effective preparation of the test of Microeconomics of Economics section.

Read the MCQ statement: Which of the following is true of the perfectly competitive firm in the short run? , keenly and apply the method you have learn through the video lessons for Microeconomics to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 125-4135.

How to Answer

Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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