Multiple Choice
A purely competitive firm is currently in short-run equilibrium and its MC exceeds its ATC at its current output level. It can be concluded that
A) firms will leave the industry in the long run.
B) the firm is realizing an economic profit.
C) the firm is suffering an economic loss.
D) the firm will shut down in the short run.
Correct Answer:
Verified
Correct Answer:
Verified
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